Insurers in Kenya meet to discuss KAM concerns

Locally based Kenyan insurers will meet this week after the Kenya Association of Manufacturers (KAM) last week questioned whether local firms could obtain the necessary capacity to offer marine insurance in time for a new law that compels exporters and importers to get local marine cargo cover by January next year.

KAM said that local firms lacked the capital and scope to cover terrorism and piracy, provide automated marine insurance services, and ensure adherence to regional and international legal instruments on free trade.

KAM also noted that the implementation of Section 20 of the insurance law was done before configuring insurance services to the Kenya National Single Window System and Kenya Revenue Authority online portals that facilitate trade. They also pointed out that there are no regulatory systems in place to ensure premium and price controls, or timely settlements of claims.

Insurers insist they have the capacity to offer the product, noting also that they have the option of linking up with global partners or forming pools to insure expensive claims.

Two insurers, Sanlam and Old Mutual, have already announced they intend to offer policies.