Shilling depreciation has consequences on the insurance business

The Kenya insurance is declining drastically, strongly strained by shilling devaluation and exorbitant interest rates. Moreover, the listed insurers have sustained upsurge in major claims to the extent of compromising their soundness.

Jubilee, Britam, Pan Africa, CIC Group and Liberty Kenya are going through rocky times while non-listed companies are standing the course with a better use of their capital. Global loss ratio has gone from 60.9% in 2014 up to 62.5% in 2015. Kenyan insurance companies exhibit poor profitability but remain able to honor their commitments.