The government is shaking insurance market

The Kenyan government has invited local companies to submit a bid for the coverage of 220 000 civil servants. This program is part of a health and life coverage project worth 6 billion KES (71 million USD) in premiums. The government is willing to underwrite an insurance policy which covers all of its staff members, in national education, armed forces, police forces and their families. Medical cover will be insured by NHIF (National Hospital Insurance Fund) which will subcontract life policy with private insurers. As a result, the premium will be split between NHIF and specialized insurers (Pan African, British America, CIC Insurance) which will benefit from a scheme-binding contract. This move is likely to boost insurance penetration rate which is estimated at 1.05% in 2010.