Kenya Re to issue cover for political risk

By James Anyanzwa

The Kenya Reinsurance Company (Kenya-Re) will strengthen its position in the retail market with the launch of a political risk cover.

The new insurance policy is informed by the massive destruction of properties, businesses and human lives that erupted after the disputed presidential poll in December 27 2007.

"Most insurers discovered that their policies did not provide for such a cover, and we don’t want to see a situation where victims are compensated on humanitarian grounds," explained Eunice Mbogo, the firm’s managing director.

The initiative, which has already drawn overwhelming interest in the insurance market, seeks to protect policyholders against uncertainties related to political activities in the country.

Economic risks

"If we can provide it in a reasonable manner, people will take it," Mbogo told The Standard in an interview. Concerns have been rife that while traditional insurance covers have often taken care of economic risks, the society has been left to grapple with political uncertainties because of its sheer magnitude and exposure.

The corporation, however, plans to table a proposal to the Treasury in the next three to four months in a bid to fastrack the product launch.

The corporation contends that the local insurance industry followed the dictates of international practice during post-election violence to quickly cancel out liability on the basis of political risks exclusion. The industry is, however, expected to build a critical mass to make the proposed facility affordable to the masses.