The Kenyan insurance industry is one of the fastest-growing markets on the entire African continent. The total gross premiums collected have risen from KSh 131 billion in 2015 to KSh 173 billion with life insurance being the faster-growing segment compared to the general business line.
It is the biggest in East Africa, 5 times bigger than the second-largest market Tanzania. Similarly, insurance penetration is significantly higher at 2.8% with Rwanda coming in at second with 1.6%. Kenya is number 5 in Africa behind South Africa, Namibia, Mauritius, and Morocco.
Penetration is measured as the total premiums collected divided by the Gross Domestic Product (GDP)(Total Premiums) x 100GDP
Insurance Companies: Industry Players
There are a total of 51 Insurance Companies, 180 brokers, 6,417 agents, and 19 bancassurance providers. The market is mainly dominated by intermediaries where the agents have 57% of premiums, brokers 28%, and the companies 15% of the market. Nairobi County accounts for 67% of the total national premiums followed by Mombasa at 4%.
Size Of The Market
The general insurance segment is still larger than the life business, contributing KSh 112 billion (65%) of the total premiums in 2015. This is different from many of the industrialized countries where the life business is the bigger share of total premiums indicating that there is still a lot to be done in Kenya to increase the uptake of life insurance products like savings, pensions, and investments products.
Medical is the largest percentage of premiums at 27% followed by Motor insurance for commercial vehicles at 22% and private vehicles at 18%. Incidentally, these 3 business lines are the biggest loss-making lines in the industry. The biggest underwriting companies are leaders in these business lines underwriting a large portion of the total premium.
Top General Insurance Companies 2020
Jubilee Insurance Company Limited has continued to lead the market locally and in East Africa with 11% of the Kenyan premiums market followed by APA Insurance Company at 8.3% market share.
Top Insurance Companies by Premiums, 2020