Insurance penetration in Kenya
Outlook: Unlike its close cousin, banking, insurance industry in Kenya still has a relatively low market penetration rate. As of 2023, Kenya’s insurance penetration rate stood at 2.3%, according to data by KNBS. Though ahead of its East African neighbors, Kenya still lags behind the regional leader, South Africa, which boasts of an insurance penetration rate of about 10%. The recent Insurance Outlook Report 2024 by Delloite shows a steady growth in both the gross written premiums and return of equity for life insurance market in the post-COVID era. This is positive trend is expected to boost investor confidence in this segment. For the general Insurance, the gross written premiums has also shown a continued increase since 2015. Despite this, there has been a sustained decrease in return on equity meaning that investors are not getting enough bang for their buck in the general insurance. This negative trend has been attributed to fraud in claims and significantly low premium growth ...