Insurers eye lucrative marine cargo business

Local insurance firms are angling for a slice of the international maritime cargo business as the national treasury moves to spur the sector’s growth.

This follows Treasury’s directive to have cargo importers have all their goods insured by local firms from September.

This is in line with the Insurance Act which stresses the need for local businesses ought to have their primary policies covered by insurers, brokers and agents registered in Kenya.

This set to open up a new battle front for insurance firms with the lucrative maritime businesses offering a new revenue stream.

The thinking is that if fully implemented, the marine cargo insurance cover will save the country Sh20 billion paid to offshore insurers annually.

Most importers cover goods to Kenya and beyond using international firms, whose cover usually expires once the goods land at the port of Mombasa.

This has left many importers exposed when goods are either damaged or stolen while at the port or while in transit.

Unlike international marine covers, the Kenyan Marine Cargo Insurance will cover imported goods from the port of shipment to the port of Mombasa all the way to the final destination.

Local insurers offering the cover will however be required to settle claims within 30 days in the event of damage or loss of cargo.

Currently 35 of the 47 registered insurance companies currently offer the marine cargo insurance cover.