Insurance penetration in Kenya has dropped to 2.43%, the lowest in the last 15 years, according to Kenya Insurance Industry Survey 2019 Report.
Penetration was at its peak in the year 2013 at 3.44% but has been falling the subsequent five years, an indicator that the sector has not been successful in riding on the insurance opportunities presented by the expanding economy and insurance information available, reported The Standard citing the survey findings.
Insurance sales have been on the decline in the past years. According to the Survey, insurers say this is owing to wanting customer service manifested by gaps in the following areas: personalised services, enduring relationships, data-based profiling, and structured market segmentation.
There is also inadequate financial and insurance education, with the public viewing insurance as a luxury that they can do without. Lack of trust in insurance has also led to lower sales.
The survey was conducted by the Insurance Information Bureau in conjunction with Esri Eastern Africa and Insurance Institute of Kenya.
In 2019, the most attractive insurance policies were automobile and health covers. Most people bought insurance because of regulations. For instance, it is mandatory to have automobile insurance when driving.
Almost 50% of the respondents paid premiums in instalments, either monthly or quarterly, rather than upfront or annually. This could be indicative of the economic situation and payment preferences.