Deputy President William Ruto has called on players in the insurance industry to widen coverage by reaching out to the untapped market in the country.
He said it was inexcusable that the penetration of insurance cover in the country was a paltry three percent.
“Fifty years after independence, the penetration of insurance in the country is only three percent: if you look at it from the other way- it means that there is 97 percent opportunity to expand insurance services in our country,’’ he said.
Mr Ruto noted that re-engineering the insurance sector can provide opportunity for mobilizing resources for saving and long term development.
The Deputy President made the remarks when he officially opened the new CIC plaza in Nairobi.
He said there was an opportunity for the regulator and players in the industry to advice the government policy measures that can be taken to expand the sector.
“For years, we have concentrated insurance services that target the rich and middle class but it’s time to reach out to low income earners and the youth,’’ said the Deputy President.
Deputy President William Ruto cuts the Ribbon to officially open CIC- Insurance Plaza building
“There are other new and emerging market dominated by young Kenyans that the insurance industry needs to look at.’’
He called on the insurance regulator to provide incentive for players in the industry to come up with products targeting low-income earners especially in the informal sector.
“The regulator should provide incentives for players who want to participate in the sector to take full advantage of the opportunity that is in the micro insurance sector,’’ he added.
Mr. Ruto said: “I am happy that there are discussions and products on how to cover our agricultural sector which contributes a significant amount to the GDP in the Economy of Kenya’’.
Present were CIC insurance group chairman Japheth Magomere, CEO Nelson Kuria, Nairobi Governor Dr. Evans Kidero and Cabinet Secretary Ministry of Industrialization and enterprise Adan Mohammed.
February 21, 2014 - Isiye/DPPS