Africa - Kenya's insurance industry to see double-digit growth - Timetric
Source: Middle East Insurance Review | Feb 2016
Having witnessed a significant growth across all the sectors in the past few years, the Kenyan insurance industry will continue to register a double-digit CAGR, said a new report by Timetric.
Overall, the sector more than doubled in size from KES77.9 billion (US$761.4 million) to KES157.7 billion during the review period (2010-2014). It is expected to continue showing a strong growth over the next five years, with Timetric’s analysts forecasting premiums of KES324.2 billion by 2019, a CAGR of 15.5%.
Timetric expects the non-life insurance sector to grow by 16.5% per year during the forecast period (2015-2019), with motor insurance being at the top, partly due to increasing disposable incomes which will likely support car sales, and third-party liability insurance being compulsory. Car sales in Kenya increased by approximately 10% over in the last five years – a trend which is expected to continue over the forecast period.
A number of construction projects planned across the country in the coming years will provide opportunities for property insurers. Construction output in Kenya rose from KES289.0 billion in 2010 to KES687.5 billion in 2014, supporting the growth of property insurance to KES48.0 billion.
KES1 = US$0.10