The kenyan insurance industrys growth prospects by segment and category. Challenges facing the insurance sector in kenya it is an uncontestable fact that the path tracing the growth of the insurance sector in kenya is littered with numerous problems. Effects of mergers on financial perfomance of insurance companies. Other trends to watch for include exits by private equity firms and growth in the inancerelated technology services sector to increase kenyas banked population. Noteworthy is the banking and insurance sectors in kenya, which are likely to. Particularly encouraging is the development of a local life insurance industry, which accounts for about a. Top 10 insurance companies in kenya answers africa.
We actively supported the sector as they prepared to adopt the standard for 2005 financial statements, and in december 2004 held a seminar for our insurance sector contacts on the implications of the standard. Insurance industry annual report 2017 insurance regulatory. Sanlam kenya has an estimated market share of 8% in kenyas insurance industry. Timetrics the insurance industry in kenya, key trends and opportunities to 2020 report provides indepth market analysis, information and insights into the kenyan insurance industry, including. The first two chapters of the report feature the country profile by giving general information on kenya and by thoroughly studying its economic state, including key macroeconomic indicators and. There are opportunities to merge mobile technology and. Kenya represents one of africas most welldeveloped and bestregulated insurance markets, with formidable historic growth and. It encourages savings and investment, job creation and growth in capital markets and financial assets. The insurance industry in tanzania, key trends and opportunities to 2019 synopsis timetrics the insurance industry in tanzania, key trends and opportunities to 2019 report provides detailed analysis of the tanzanian insurance industry. The study is focused at determining the specific marketing. The study is based on the 4ps, marketing mix, as a theoretical and strategic option of effective marketing.
In kenya many insurance firms have turned to mergers and acquisition as key. The effect of mergers and acquisitions on the financial. Effect of mergers and acquisitions on the performance of. Within the subsectors of the industry, the picture is far more nuanced, but market analysts are expecting this thirst for deals to persist way into 2019. Kenya is among the most advanced, with a penetration rate of 3 per cent. Nov 04, 2012 the insurance industry is facing in kenya. Medics attend to a covid19 mock patient at aga khan university hospital, nairobi during a drill conducted to test the hospitals preparedness to respond to covid19 mass patient influx.
Noteworthy is the banking and insurance sectors in kenya, which are likely to witness significant deal activity in the near future due to the revised regulatory capital requirements. The application of ifrs 4 insurance contracts in 2005 was a significant challenge for the global insurance industry. Members of the insurance industry excluding insurers whose. Factors influencing agents retention in insurance industry. New accounting standards that take effect this year are expected to spur more mergers. In the last five years, the life insurance market in kenya has experienced.
Macharia, rose wachuka, the motor insurance industry in kenya. East africa insurance outlook report 20192020 deloitte. Nmg uap insurance kenyas profit for the year ended december 2019 jumped more than four times on increased investment income and reduced impairment. Insurance mergers and acquisitions to rise in kenya. We compare insurance companies to find you the most suitable insurance policy at competitive price. There are a total of 5,155 insurance agents in kenya. Analysis of the effiency of life assurance companies in kenya using the deamodel. Factors influencing demand for micro insurance services in. Kenya insurance industry news monitoring service from ein news.
Kenyan insurance sector in flux as firms consolidate and. Between 1963 and1984, there was no legislation that specifically addressed insurance in kenya, thus leaving a gap. The insurance industry in kenya, key trends and opportunities. Any alterations in particulars stated herein or in the said documents will be promptly communicated to the commissioner of insurance. This article assessed the factors influencing demand for micro insurance services in the insurance industry in kenya. Many people dont think insurance is beneficial to them. Mergers and acquisitions that will shape kenyas economy. As a result of globalization, deregulation and terrorist attacks, the insurance industry has gone through a tremendous transformation over the past decade sanchez, 2006.
The insurance industry in kenya, key trends and opportunities to 2018 market research report reportscue. They are regulated by the insurance regulatory authority. Visit our insurance industry page for broader industry insights, analysis, and. The output was to establish the factors affecting the growth of life insurance business in kenya and therefore came up with recommendations that will help in determining those indicators that the industry should focus on to enhance growth of life insurance business. The firm has about 99,401 policy holders under individual life and more than. Causal research design is consistent with the study objective which is to determine the effects of mergers on financial performance of insurance industry in kenya which can be measured through longrun profitability, stability, leverage and liquidity. Law applicable to contracts of insurance and place of payment. The insurance regulatory authority ira is the regulator of all insurance companies in kenya, with a mandate to regulate, supervise and. The effects of mergers and acquisitions on financial.
Kenyas listed insurance companies analysis cytonn fy2015. Insurance sector in kenya in kenya there are a total of 49 insurance companies, 5 reinsurance companies and 198 insurance brokers. The tax is computed as a percentage of the gross direct premiums written by an insurer at a rate of. Insurance sector outlook for east africa 2015 deloitte east. Causal research design is consistent with the studys objective which is to determine the effect of mergers and acquisition on financial performance of insurance companies in. In research methodology, the study adopted cross sectional survey design. The insurance industry in tanzania, key trends and. The banking industry in kenya is governed by the companies act, the banking act, the central bank of kenya act and the various prudential guidelines issued by the central bank of kenya cbk. A case of small and medium insurance companies in nairobi county jane wambui ndegwa master of business administration, laikipia university, kenya thomas w. This report provides a comprehensive analysis of the insurance industry in kenya.
The mauritian minister for financial services, roshi bhadain. Coming into this calendar year, we have gone off the scale in terms of global deals, says david lambert, global insurance transactions leader at professional services group ey. Kenyan insurance sector in flux as firms consolidate and expand. The insurance business in kenya is profitable, but it is not necessarily easy. Apr 26, 2018 within the subsectors of the industry, the picture is far more nuanced, but market analysts are expecting this thirst for deals to persist way into 2019. The target population was insurance service providers in kenya licensed by the insurance regulatory authority ira. After independence in 1963, the government of kenya saw the need to have control over the insurance industry, which was. The biggest mergers and acquisitions in insurance raconteur. Africas insurance market a giant waking up financial. In 2016 kenya was ranked as one of africas most mature insurance markets, with growth forecast at 6% a year, according to ey. Annual insurance industry report for the year ended 31st december 2016 the national treasury p. A may be of value relevance due to existence of various market imperfections.
There are opportunities to merge mobile technology and innovation with insurance services. Jan 18, 2015 the insurance industry in kenya, key trends and opportunities to 2018 market research report reportscue slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Mergers and acquisitions are the lifeline of any industry because there is no industry except some industries where the government itself has monopoly powers where mergers and acquisitions do not happen and that is the reason why it is important to know both advantages as well as disadvantages of mergers and acquisitions. The insurance industry experienced fairly good growth in 2006 with most companies reporting increased premium income and profitability.
The first two chapters of the report feature the country profile by giving general information on kenya and by thoroughly studying its economic state, including key macroeconomic indicators and their development trends. Abstract during the last few years, the insurance industry has undergone a series of changes through. Africas insurance market a giant waking up financial times. Assessment of challenges facing insurance companies in building competitive advantage in kenya. The joint company is said to be named airteltelkom. Key statistics from the kenya insurance industry for the year 2016 touching on premiums growth and profitability by insurance class. After independence in 1963, the government of kenya saw the need to have control over the insurance industry, which was then dominated by branch offices of. Despite the countrys various economic and political problems, the industry has shown it can survive and thrive. International journal of social sciences and entrepreneurship, 1 11, 467490. The insurance industry in uganda, key trends and opportunities to 2018. United republic of tanzania tanzania insurance regulatory. The effects of mergers and acquisitions on the financial.
Analysis of the effiency of life assurance companies in kenya. Insurance cover upon change of ownership of motor vehicle. Comparative analysis of the six insurance companies financial performance for the pre. The importance of insurance, its challenges and solutions.
Jul 07, 2015 kenyan mergers and acquisitions of 2015. With the rapid expansion of east africas economy, the insurance industry is on a solid footing entering 2015. A report on subsaharan markets done by professional services firm ey forecasts that kenyas insurance sector could expand by a 6 per cent compound. Kenya insurance industry swot strengths kenyas insurance industry is resilient. Recent laws and reforms in east africa insurance industry 40.
Analysis of the effiency of life assurance companies in. Merged insurance companies in kenya between 19942012. Reforming the insurance regulatory framework in kenya. The honourable cabinet secretary, national treasury dear sir, re. This research paper seeks to evaluate the kenyan insurance industry which is based on the fault law, its shortcomings and the applicability of the no fault system to cure the ills of the fault insurance regime in this country. Kenyan mergers and acquisitions of 2015 quantum economics. After long periods of working with outdated software, manual. Orange kenya and cic insurance offer orange bima, which combines life assurance and insurance for mobile phones. Kenindia is the result of the 1979 merger of the kenyan subsidiaries of four of indias. Amounts and values in policies to be expressed in kenya currency. Insurance sector outlook for east africa 2015 deloitte. Particularly encouraging is the development of a local life insurance industry, which accounts for about a third of total premiums. Defaults of insurer, broker or agent not to invalidate policy. This report is a comprehensive research of insurance industry in kenya.
Telkom kenya limited and airtel networks kenya limited announced the signing of a binding agreement that will see shareholders of the two businesses enter into an agreement that will merge their operations to form a joint venture company. Gakobo department of commerce, laikipia university, kenya samuel onyuma department of commerce, laikipia university, kenya. The importance of life insurance as part of the financial sector and a player in the economy has significantly. This has led to high poverty levels hence low purchasing power. It is expected that the demand for both life and nonlife insurance products will continue to rise as more households join the middle income class and as the market for project risk coverages soars driven by the ongoing investment in infrastructural projects across the region. Causal research design is consistent with the studys objective which is to determine the effect of mergers and acquisition on financial performance of insurance companies in kenya. Microensure ceo stephen kamanda said it would reach up to 12. The insurance regulatory authority ira is the regulator of all insurance companies in kenya, with a mandate to regulate, supervise and develop the insurance industry in kenya the minimum paidup capital have been set at kshs. Advantages and disadvantages of mergers and acquisitions. Insurance industry annual report2016 on behalf of the board of the insurance regulatory authority, i have the honor.