Kenya’s bancassurance premiums hit KSH35 billion in 2023

By Monica MUEMA

Kenya’s bancassurance gross written premium grew from KSH19.5 billion in 2019 to KSH35 billion in 2023, representing a 79.4% growth, according to the Association of Kenya Insurers (AKI).

During the same period, the Bancassurance distribution channel market share grew from 8.4% to 10%.

While bancassurance experienced strong growth in premiums, the claims equally surged from KSH6.5 billion to KSH14 billion during the five-year period. The loss ratios in non- life insurance moved from 43.9% to 52% between 2019 and 2023, compared to an industry average of 67%.

Out of the 24 licensed bancassurance agencies, nine contributed 83.5% of the gross written premium collected, each generating over KES 1 billion, with the leading agency generating KES6.34 billion.

Motor insurance leads as the most popular non-life insurance product commanding 58.6% of the total premium collected, while credit life/mortgage insurance leads the life insurance products at 62.9% of the total premium collected.