Report ranks Kenya high as potential market for insurers

Kenya’s positive growth, rising consumer demand, population and new technology make it attractive for African insurance companies outside South Africa. This was revealed in a report launched yesterday by consultancy firm Ernst & Young (EY). The report titled Waves of Change: Insurance opportunities in Sub-Saharan Africa compares insurance markets in seven countries namely Kenya, Malawi, Tanzania, Uganda, Nigeria, Zambia and Ghana. The report shows Kenya recorded the highest insurance premiums as a percentage of Gross Domestic Product among the seven countries at 1.9 per cent. It also topped in terms of potential for increased life insurance sales at 35 per cent. The country also held the first spot among the seven countries when it came to Insurance premiums paid per capita, recording $39 (Sh3,971). All this data was compiled in 2014. In the same year, Kenya generated insurance premiums of $1.8 billion (Sh183.3 billion), the largest in Sub-Saharan Africa again outside South Africa. See also: More women prefer C-section to normal delivery Oxford Economics expects the Kenyan insurance market to grow to $2.2 billion (Sh224 billion) by 2018.

Non-life insurance

Non-life insurers dominate the Kenyan market and collect two-thirds of total premiums. Nearly half of non-life covers are generated from automotive insurance. Almost another quarter comes from health. But still given the relative prosperity in Kenya, Insurance penetration remains small with the report citing fraud as a major concern. “A whole 95 per cent of respondents claim insurance fraud is what is keeping them from getting covers,” the report reads. “Already the most mature among the seven countries in our survey, significant upside potential exists in Kenya,” says Steve Osei-Mensah, EY East and Central Africa Insurance and Actuarial Advisory leader. “During the first quarter of 2015, premiums grew by 16.4 per cent, according to the Insurance Regulatory Authority. And for all of 2014, gross direct premiums grew at more than 20 per cent,” Mr Osei-Mensah added. Kenya has also been a leader in developing its M-PESA mobile money platform. A number of insurers already employ it to fund basic insurance coverage, though some executives doubt it can ever replace the traditional system of using agents and brokers for higher-priced or more sophisticated covers. 

By Lee Mwiti 

http://www.standardmedia.co.ke

February 17th 2016 at 00:00 GMT +3

Kenya: Insurance Brokers Protest Market Share Loss to Banks

Source de l'image:letsreviewkenya.com

Insurance brokers Friday  called on the government to save them from banks as bancassurance eats into their market share.

Association of Insurance Brokers of Kenya(AIBK) chairman Mr Muchemi Ndung'u said they had officially protested to the Commissioner of Insurance and to the Insurance Regulatory Authority(IRA) urging them to intervene and stop the haemorrhage.

"Bancassurance is cannibalizing us into oblivion and this must stop since they lack trained staff to handle clients as we have done over the years.

Competition is healthy but it has to be regulated as what the banks are doing is not enhancing penetration but disrupting the insurance brokerage business," said Mr Ndung'u.

Speaking in Nairobi during a breakfast meeting, the AIBK boss said Kenya must also urgently look into the rising number of medical cases referred to India as local doctors were pocketing upto Sh100,000 per referral.

This is depleting families's resources as well adversely affecting the country's economy as more patients were being referred to Indian hospitals unnecessarily to undergo surgical procedures that could be handled locally at a much cheaper cost.

Mr Ndung'u said that AIBK's Sh3 million was still held at Imperial Bank and urged his board to pursue the matter to have the money released to fund the association's programme.

By James Kariuki

29 January 2016

The Nation

 

Source: http://allafrica.com/stories/201601290790.html

« Un Coup d’œil sur la réassurance »

Etant courtier d'assurance et de réassurance, la CIBCO a déjà constaté que les deux couvertures se ressemblent. Par cette article, vous comprendrez plus les détails sur la réassurance et vous serez même capable de la distinguer avec l'assurance tout court par des compagnies d'assurance. 

Définition

La réassurance est l’assurance des sociétés d’assurances. Parfois appelée assurance secondaire, celle-ci ne peut pas exister sans l'étape préliminaire du transfert de risque que représente l'assurance primaire. La réassurance fait partie du secteur de l’assurance et de la finance en général.

Fonctionnement

On distingue plusieurs branches et sous-branches dans la réassurance (vie, non vie, dommages aux biens, responsabilité civile, etc.) qui se déclinent en trois grands types ou modes de réassurance (obligatoire, facultatives et facultative-obligatoire) qui peuvent eux-mêmes se conjuguer sous quatre grandes formes de contrats de réassurance (excédent de sinistre, excédent de pleins, excédent de perte, quote-part).

Type de réassurance

Les trois modes de réassurance sont, par ordre de volume de primes, la réassurance obligatoire réalisée par traités (treaties) qui couvre tout le portefeuille d'une cédante dans une sous-branche, comme le portefeuille automobile ou incendie par exemple. Ensuite vient la réassurance facultative réalisée par des facultatives (facultatives en anglais) qui couvre un ou plusieurs risques ou polices spécifiques de la cédante et qui sont explicitement décrits. Enfin beaucoup plus rare, la réassurance facultative-obligatoire qui réalise un mélange des deux modes précédents. Par définition, la réassurance en traité couvre des sommes beaucoup plus importantes et le réassureur doit accepter de couvrir tous les risques de la sous-branche de la cédante, alors que la réassurance en facultative ne couvre qu'un ou quelques risques choisis par les deux parties. Elle réclame donc une expertise plus importante et se rapproche de la souscription en assurance. Dans la réassurance facultative-obligatoire, la cédante choisit quels sont ses risques qui seront cédés au réassureur qui doit accepter de couvrir tous ces risques.

Courtiers de Réassurance

Comme pour l’assurance, il existe des courtiers de réassurance qui conseillent et assistent leurs clients, dans ce cas des sociétés ou mutuelles d'assurance. Le courtier de réassurance (reinsurance broker) est également chargé par son client, la cédante, de négocier et placer ses programmes de réassurance auprès de compagnies de réassurance. Même si le courtier n'est pas solidaire des engagements du réassureur auprès de la cédante, il reste tenu par un devoir de conseil envers celle-ci sur le risque de crédit et de défaillance des réassureurs.

Source : Wikipedia