NAIROBI, Kenya Mar 15 – Kenyan insurance agents will soon be required to obtain a practicing certificate before selling insurance products under the Insurance Professionals Bill, 2024, which seeks to regulate professionals in the sector.
The new bill before Parliament aims to streamline the industry by introducing strict standards for insurance professionals to ensure insurance agents meet set qualifications and pay for licenses to continue with their operations.
Sponsored by Molo MP Kuria Kimani, the bill seeks to legally establish the Insurance Institute of Kenya (IIK) as the main regulatory body responsible for setting professional standards and ensuring ethical conduct.
Currently, IIK operates as a membership-based organization providing professional certification and training but does not have full regulatory powers.
“The main objective of this Bill is to provide a legislative framework for the regulation of professionals in the insurance sector to enhance the standards of service in the sector, promote professionalism and address concerns regarding professional misconduct in the insurance industry,” the bill read in part.
The bill also seeks to create the Insurance Professionals Examinations Board, which will administer tests for individuals seeking to be recognized as insurance professionals.
This means that before anyone can sell insurance policies, they will have to undergo formal training, pass exams, and obtain certification.
“The Insurance Professional Examinations Board will be mandated to issue examinations for persons seeking to be qualified as Insurance Professionals,” it added.
It further proposes the formation of a registration committee, which will oversee the licensing process, maintaining a register of all qualified insurance professionals.
Those who fail to meet the set requirements or engage in misconduct risk having their licenses revoked.
If passed into law, the bill will not only elevate the status of Kenyan insurance professionals but also increase regional recognition of their qualifications.
The Insurance Professionals Bill, 2024, aims to enhance professionalism, protect consumers, and curb fraud in the insurance sector.
However, the new law may lock out thousands of Kenyans who fail to meet the requirements but depend on selling insurance policies for a living.
