Stiff competition in pricing has continued to inhibit the growth potential of the insurance market in Kenya, a new report has said. According to the agency, price undercutting remains a serious hurdle, making it challenging for companies to generate sufficient capital internally to keep pace with market growth. The report however notes that overall international standards reveal low insurance penetration and therefore Kenya’s insurance market has good long-term potential. Last October, IRA having said 20 insurance companies or 35 per cent of 56 licensed businesses were facing capital shortfall. The report notes that the prospect of increasing regional trade and economic growth through pacts such as the African Continental Free Trade Area represents a great opportunity for future premium growth.

Source: The Star July 20, 2021 00:56 UTC