Insurance industry needs disruption

The decrease in insurance penetration rate in Kenya to a low of 2.4 per cent last year is not that mysterious. It simply shows the economy grew but not the premiums. Ideally, the growth in the economy should go hand in hand with growth in insurance.

Increased wealth leads to higher demand for insurance. That is why wealthy South Africa had such a high penetration rate of 14 per cent in 2017, according to a report by the Association of Kenya Insurers. Nigeria had about 0.25 per cent.