Keeping Your Business in Mind

Regulator Issues Equity Group with an insurance business license

The Insurance Regulatory Authority (IRA) has issued a  license to Equity Group to venture into the insurance business.

The new venture dubbed Equity Life Assurance is a fully fledged business with  separate structures and commercial arrangements in line with the IRA regulations.

Speaking during the issuance of the license, The Commissioner of Insurance & Chief  Executive Officer (CEO) IRA Mr. Godfrey Kiptum reiterated that the diversification strategy and entry of Equity Group into the insurance market is proof that the insurance industry in Kenya continues to be attractive to investors.

“We continue to receive interests from foreign based financial institutions ranging  from brokers, insurers, re-insurance brokers and re-insurance companies looking for  investments in the Kenyan Assurance market. This underscores the position of Kenya  as a viable investment destination,” he said.

Kenya’s insurance industry has continued to enjoy steady growth over the years with  the insurance market premiums currently being valued at approximately Ksh235 billion. The market, however remains driven by the general business category with  long term insurance premiums standing at Ksh. 102 billion. This accounts for 43.4%  of the total premiums underwritten.

“We are witnessing a growth compared to last year and this is attributed to the Covid 19 recovery measures. Our market, however, is still general business driven and I call upon Equity Life Assurance to identify strategies of increasing insurance growth in  the long-term business,” he said. With the entry of Equity Life Assurance Company,  the country will now have a total of 62 operational insurance and re-insurance  companies.

He emphasized the need to develop ways of enhancing value and trust in life  insurance and its distribution if there is to be growth in this class while explaining  the important role played by insurance. He added that globally, insurance business is at a critical stage as the sector responds to social, economic and technological  challenges. He explained that the industry continues to benefit from a growing  educated population, change in cultural norms, increased urbanization, investment  in infrastructure, improved technology and distribution channels.

Mr. Kiptum said that the government through the IRA is committed to providing an  enabling environment to ensure that the insurance sector remains competitive.  “Kenya is among the best performing countries in Africa in insurance business largely  due to innovative distribution channels, a liberalized market and strong regulation,”  he concluded.


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