Kenyan insurance firms are eyeing products of below 12 months to address the needs of the young population as losses pile up and penetration stalls.
The Association of Kenya Insurers (AKI) chief executive, Mr Tom Gichuhi, says the market is increasingly tilting towards a population that wants insurance that is affordable, flexible and covering as less as two months.
“If we keep on insisting that our products must be annual and we are not able to come up with short-term covers that are reasonably priced, we will wake up as dinosaurs,” said Mr Gichuhi in Nairobi on Thursday.
Speaking at an event convened by ZEP-Re and CIO East Africa, Mr Gichuhi said the market should deepen collaboration with actuaries to help in pricing of innovative covers.
Insurance penetration has dipped to 2.43 per cent, the lowest in 15 years, while the combined profit for the 54 insurers in Kenya has shrunk to Sh3.54 billion — the lowest in 12 years.
This is despite the rising insurable risks in the economy, among them cyber safety.