AKI welcomes rule on maritime insurance

AKI welcomes rule on maritime insurance

The Association of Kenyan Insurers (AKI) is in the process of implementing changes in the insurance act to give Kenyan firms a larger share of the maritime business.

This comes as the country’s 51 insurance firms lose out on an estimated Sh20 billion in premiums from insuring cargo through Kenya.

Speaking during the release of the Insurance Industry Annual Report AKI chief executive officer Tom Gichuhi said the move will give local insurance firms a competitive edge and new business line taken up by foreign firms.

“Marine Cargo Insurance has also benefited from Government intervention after the Cabinet Secretary, National Treasury directed Kenya Revenue Authority to work with stakeholders to implement Section 20 of the Insurance Act which stipulates that Kenyan insurance should not be placed with insurers not registered under the Act,” Mr Gichuhi said.

Currently importers take insurance with foreign firms, whose covers expire on landing at the port of Mombasa.

This has meant that importers incur high costs should goods be damaged or stolen while in transit to their final destinations.

Mr Gichuhi said the lobby group is working with the ministry of transport, treasury and the Kenya International Freight and Warehousing Association to speed up implementation.

“Kenyan importers under the current practice have limited recourse if anything happens to their imports before they arrive in the country,” he said.

According to the annual report, gross premiums rose to Sh173 billion up from Sh156 billion in 2014.

Insurance penetration however remains at a paltry 3.2 percent with calls for insurance firms to become more innovative to appeal to a wider customer base.

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