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3 reasons why Kenya needs Insurance

The house collapsed in Nairobi. Source internet.

I wanted to copy and paste and article I got from world bank blog here but it would be a crime. Plagiarism is crime since it’s practically theft. I am not a thief but I derive motivation to talk about issues that affect me. Understanding marine insurance was insightful and there were questions raised, for example, Purity asked, how many customers have I convinced to take marine insurance locally since marine insurance is international in nature? Zero was my answer but that does not deter me from selling it. If you need insurance for your property i.e car, house, business premises, do not hesitate to contact me. Here is me contact form

  1. It is painful to pick up ourselves after a tragedy. Insurance penetration is way below 5% in Kenya and most emerging markets. Although there has been an increase awareness campaign over the years, nervousness is still prevalent among most Kenyan middle class. Those interested in taking up insurance plans still have burning questions on whether they should take it or not. This is occasioned by the fact that it is a hectic process to claim your dues after a peril happens. Most Kenyan do not know why their insurance policies were not honoured. In general, fraudulent of self-inflicted losses are the major causes of repudiation.The costs incurred to put yourself back in order after a peril are enormous. The pain of foregoing projects because of an eventuality that needed immediate attention is unbearable at times and that brings in insurance. Insurance brings you back to your financial standing before a peril happened. Note that insurance is not there to make anyone rich or to cater for wear and tear.
  2. Insurance premium runs into billions of Shillings. This is worthwhile for the economy. Importers and exporters will be required to obtain their insurance locally in the near future. this will be mandatory and do you know why? This industry amasses a lot of wealth which has been untapped for decades. Take marine insurance from example, between 2005 and 2014, marine insurance premium growth has been below 30% despite the growth in exports and imports in Kenya. This means a lot of money has been splashed to other countries which woke up earlier than Kenya.The  directive to ensure all importers take insurance locally is going to grow the economy and improve financial markets significantly. The effect will be felt further down with the increase in government income through taxation and consequently, help in fighting poverty.
  3. The number of students taking insurance as a profession is wanting. The only requirement for one to be satisfied insurance sales agent is a certificate of proficiency (COP). This is a low-level course yet we can’t find students taking it. Insurance firms struggle to find sales people with zeal and motivation to sell. Why? because of what young people have in regarding insurance.