Ernst & Young latest report states that Kenya’s Insurance Sector has shown a lot of improvement compared to last year, where its profits fell by 61.5%, and it is expected to perform even better in the coming year.
It is also reported that the Insurance sector will grow due to its demand by the youth as this is the period that has had a big number of young people enter the job market than any other time in history, and the trend is expected to go on in the coming years.
This will be a good opportunity for the insurance sector, as the demand for the various types of insurance products common to employees will grow. The pension funds will also grow as well, therefore, the number of clients seeking insurance will grow and lead to more opportunities and growth in the sector.
The Ernst & Young report further advises the Kenyan Insurance Sector to provide insurance products that will be appealing to Millenials and as well come up with ways to provide service to this particular niche of customers.
The Kenyan Insurance Sector posted the biggest loss of $26.6 million in 2018 compared to the loss of $9.5 million reported in 2017. The motor sector was leading in losses at $25.7 million.
The loss was largely attributed to the capping of interest rates in 2016 which has continued to affect the sector because lending to insurable investment projects and assets has remained constrained.
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