Marine insurers are expecting some fallout in terms of premiums of about 17 billion KES (169 million USD). This windfall might result from the requirement imposed to foreign importers to get insured, as of January 1, 2017, with local insurance companies. Nearly 90% of exports are today insured by foreign players. Importers located outside Kenya are paying packages including commodity cost, insurance and transport.
The amendment of the insurance code will certainly promote local premium retention in the marine class of business. The premiums underwritten in marine insurance are poised to rise from 2.9 billion KES to 20 billion KES (29 million USD to 199 million USD). Other repercussions such as the increase in insurance penetration rate are hoped.
Read also: