Higher rates of terrorism insurance

The resurgence of the terrorist threat in Kenya in recent months has led to increased rates of terrorism insurance between 10% and 20%.

According to George Otieno, the president of the African Trade Insurance Agency (ATI), this rate increase is mainly due to the terrorist attack of Westgate Mall. The latter made clear to insurers that the risk of terrorism is equal, if not greater, to the risk of political violence.

Note that the increase will only affect new purchasers of insurance policies. The previous, as Westgate Mall, benefit rates are more or less similar in case of renewal.

As a reminder, the Westgate Mall was insured by Kenindia Insurance and reinsured by both Lloyd's and ATI for 76 million USD.