Kenya has been one of the countries with a lower insurance penetration rate as compared to the global average. Lack of insurance awareness coupled with unequal distribution of resources and high rates of unemployment was a major hindrance for the insurance business in Kenya.
However, the introduction of long-term development plans by the Kenyan government to boost socio-economic growth and elevate Kenya’s status to a middle-income country, is expected to promote financial inclusion in the upcoming years. The growing economy supports increasing insurance penetration and thus opens a window for the growth of an insurance company in Kenya.
The fast-soaring GDP, less insurance buyers and competition among the insurance companies leaves the companies struggling for improving their market share. As insurance is seen as an extra burden in the country, insurance companies need to adopt innovative approaches which would benefit customers of all income groups.
Adoption of technology like big data and cybersecurity is crucial for insurance companies. This would allow companies to ensure secure services and provide an easy mode of access to customers. Moreover, introduction of analytics would encourage the development of personalized insurance solutions designed as per needs and expectations of the consumer. Lastly, collaboration between government, regulatory bodies and companies is imperative for the growth of this sector.