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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
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