Kenya Insurance Report - Business Monitor International - Industry Reports

Kenya Insurance Report

Kenya Insurance Report - Business Monitor International - Industry Reports
Kenya Insurance Report
Published Aug 13, 2016
68 pages — Published Aug 13, 2016
Price US$ 1,295.00  |  Buy this Report Now

About This Report

  
Abstract:

Kenya s life insurance segment is significantly smaller than the non-life segment, accounting for less than a third of all gross premiums written in the country. Market penetration (premiums as a percentage of GDP) remains low, giving plenty of scope for continued double digit annual returns in local currency terms; and in some years, in dollar terms, too. The life insurance market in Kenya is more developed than in many other countries in Africa, and along with relatively liquid local financial markets, this makes Kenya an attractive investment destination for international insurance firms keen to expand into emerging markets. The market is very fragmented, with a multitude of small insurance firms claiming tiny segments of the life insurance market - we expect to see consolidation in the market over the next few years as regional and global insurers acquire the smaller firms in order to gain a foothold in Kenya. Over the longer term, although Kenya offers an enormous potential market for life products, with a population of over --mn, low income levels will continue to constrain private spending on life insurance products. Almost half of households in the country live below the poverty line and conventional life insurance products are unaffordable, while demand for retirement products is dampened by low life expectancy rates. Successful development of innovative products (including micro-insurance) and new distribution arrangements will therefore be important as drivers of premium growth.

...The balance of risks to our forecasts is to the downside, a reflection of the bullish nature of our core scenario. Our expectations are built on the government s high growth strategy, which is currently yielding results - the economy is growing by close to - per year in real terms - but these policies are built on fiscal easing, with risks attached to a high fiscal deficit. ...The balance of risks to our forecasts is to the downside, a reflection of the bullish nature of our core scenario. Our expectations are built on the government s high growth strategy, which is currently yielding results - the economy is growing by close to - per year in real terms - but these policies are built on fiscal easing, with risks attached to a high fiscal deficit. There are also specific risks to the financial sector, which have so far been largely contained in the banking sector, but could feed through to aversion to insurance companies and their products, in the worst case scenario. ...Aware of the risks, regulators are also demanding stronger capital provisioning by insurers. We provide a full analysis of the changing regulatory environment in this update.

...We now expect the life sector to register growth in gross annual premiums of --.- in ----, taking total premiums written to KES--.-bn, while we expect growth in USD terms of -.- this year. Across the period ---------, we anticipate strong annual double digit returns in KES terms and just over -- per year growth in USD terms. ...

  
Source:
Document ID
2044-561X
Country
Industry
Format:
PDF Adobe Acrobat
Buy Now

Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

About the Author


Cite this Report

  
MLA:
Business Monitor International - Industry Reports. "Kenya Insurance Report" Aug 13, 2016. Alacra Store. Dec 04, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Kenya-Insurance-Report-2026-2631>
  
APA:
Business Monitor International - Industry Reports. (2016). Kenya Insurance Report Aug 13, 2016. New York, NY: Alacra Store. Retrieved Dec 04, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Kenya-Insurance-Report-2026-2631>
  
US$ 1,295.00
$  £  
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Market Research from one place.