CONTACTS: +254 726879488 (Mobile)
+254770 455 116 (Office)
Kenya: Top firms scramble for slice of marine insurance trade
Get real time updates directly on you device, subscribe now.
After more than a decade of administrative wrangling, a new law that makes it
compulsory for all imports to be insured locally came to effect this month,
allowing players to increase stakes in marine cargo insurance, kicking off a
scramble for the anticipated boom among Kenya’s insurance firms.
The law (marine cargo insurance policy) requires all imports to be covered locally,
making it easy for importers to make claims, a departure from the past when they
had to lodge claims with oversees underwriters.
Industry regulator, Insurance Regulatory Authority (IRA) had assured investors in
the import and export trade that it has capacity to handle future potential boom in
the marine cargo insurance.
About Sh20billion could flow into the sector after the directive attracted a host of
insurers including Jubilee Insurance, APA insurance, Kenya Orient, Old Mutual,
Britam, Kenindia Insurance among others that have launched their marine cargo
online portals to allow their customers and intermediaries Customs department at
KRA and IRA manage the policy seamlessly.
Other estimates suggest more contribution could come in if other smaller players
with general insurance partners do likewise.
“The implementation had been a challenge since it was enacted in the 1990s, but
with the implementation now on course, we expect the industry to grow from the
more than 92 per cent international trade the government is underrating in
shipment business,” said Ms. Nancy Karigithu PS Department of Sipping and
Maritime during the launch of Jubilee insurance marine cargo online portal
yesterday.
The country’s total premiums for Marine Cargo Insurance in 2015 grew by
Sh2.9billion or just about 10 percent of the potential market