The Insurance Regulatory Authority (IRA) has called on industry players to diversify their offerings and reduce over-reliance on compulsory insurance products if the sector is to realize meaningful growth and broaden its impact in Kenya.
Speaking during a bancassurance forum co-hosted by Standard Chartered Bank and Prudential Life Assurance Kenya, IRA Chief Executive Godfrey Kiptum emphasized the need for innovation and value-driven solutions that appeal to consumers beyond regulatory requirements.
“The industry continues to lean heavily on mandatory covers, like motor vehicle insurance, because they are easy to sell,” Kiptum noted. “But to unlock real growth, we must design products that protect livelihoods and offer tangible value to policyholders.”
He challenged insurers and financial institutions to embrace customer-centric innovations and educational campaigns aimed at changing public attitudes toward insurance.
Despite efforts to expand access, insurance penetration in Kenya remains low, ranging between 2.3% and 2.4% of GDP, according to data from global market research firm Statista. This figure is well below the global average, highlighting a vast untapped market in Kenya and across the continent.
The IRA boss linked the low uptake to a combination of factors, including:
Low levels of disposable income
A limited savings culture
Widespread mistrust or misunderstanding of insurance products
Kiptum also pointed out that although Kenya ranks relatively well within Africa, the continent’s insurance sector as a whole remains underdeveloped. Africa contributes only around 1% to global insurance premiums, which currently total about $63 billion, underlining the enormous growth potential.
He urged players in the sector to move beyond traditional models and explore new frontiers such as microinsurance, agricultural insurance, digital distribution channels, and bancassurance partnerships to boost reach and relevance.
“Penetration is low, but the opportunity is enormous,” he said. “By focusing on the needs of ordinary Kenyans, especially those in underserved areas, we can transform insurance from a compliance product into a tool for economic empowerment.”
The IRA has continued to advocate for regulatory reforms, product diversification, and digital adoption to help bridge the coverage gap and support financial inclusion in line with Kenya’s economic development goals.
