THE INSURANCE INDUSTRY IN KENYA
Presenter: Dr. Samuel Kariuki
, Introduction
The insurance industry in Kenya is operated under the
guidance of the insurance act cap 487 of the laws of Kenya
together with the related statutes.
The laws regulate how the industry should run and provides
for the bodies that should be created to manage the
industry, the books of accounts to be kept, requirements for
registration and deregistration among others.
Among the bodies tasked with the running of the industry
include the insurance regulatory authority which is the
overall body concerned with the licensing and the
association of Kenya Insurers which is a voluntary member
organization.
, The Main Players in the Insurance
Industry
Underwriters – These are the various insurers who cut across the
sector ranging from life assurance, motor, health and general
insurance.
Their role is to provide covers in their areas of specialization a task
they undertake through the process of underwriting. This is the
process through which an insurer determines the risks to be covered
and the required premiums for each type of cover.
To do so an insurance company analyses a specified risk, evaluates
it and determines its ability to cover it depending on the magnitude
of risk it will be taking on itself and hence makes a decision on
whether to accept or reject to take on the risk.
Thus underwriting is a way for the insurer to discriminate on the
opportunities available to offer covers for available risks.
Presenter: Dr. Samuel Kariuki
, Introduction
The insurance industry in Kenya is operated under the
guidance of the insurance act cap 487 of the laws of Kenya
together with the related statutes.
The laws regulate how the industry should run and provides
for the bodies that should be created to manage the
industry, the books of accounts to be kept, requirements for
registration and deregistration among others.
Among the bodies tasked with the running of the industry
include the insurance regulatory authority which is the
overall body concerned with the licensing and the
association of Kenya Insurers which is a voluntary member
organization.
, The Main Players in the Insurance
Industry
Underwriters – These are the various insurers who cut across the
sector ranging from life assurance, motor, health and general
insurance.
Their role is to provide covers in their areas of specialization a task
they undertake through the process of underwriting. This is the
process through which an insurer determines the risks to be covered
and the required premiums for each type of cover.
To do so an insurance company analyses a specified risk, evaluates
it and determines its ability to cover it depending on the magnitude
of risk it will be taking on itself and hence makes a decision on
whether to accept or reject to take on the risk.
Thus underwriting is a way for the insurer to discriminate on the
opportunities available to offer covers for available risks.
