Kenya has one of the fastest-growing economies in Africa, which significantly makes Kenya’s insurance sector a good ground for investment and growth.
In our previous article, we explained extensively what insurance is and why it is important to have one.
One of the major reasons people get insured is to move their unforeseen risks to a trusted third party.
Insurance companies also play a vital role in protecting you and your loved ones from financial stress caused by risks.
Over the years, insurance companies have taken the burden of paying compensation for these unforeseen damages to their registered clients.
However, most Africans are still skeptical about getting their lives, assets, and properties insured.
In Kenya, there are more than 50 registered insurance companies offering different insurance products. However, these companies have still not been able to successfully penetrate the market.
As of 2012, only about 3% of Kenyans had some form of insurance cover, and up till now, there hasn’t been much improvement.
This disparity has led to an unhealthy competition between insurance companies and an increase in price wars to gain market share.
Due to this fact, a number of policies had to be reviewed in order to regulate insurance companies’ activities and competition, which can have a negative and long lasting effect on Kenya’s economy.
The good thing is that there are still some insurance companies in Kenya that have been able to stand out in terms of quality of service and other added benefits they offer.
Generally, there are two categories of insurance, and they are:
1. General or Non-Life Insurance and
2. Life Insurance
General insurance is defined as any insurance not determined to be life insurance.
In Kenya, general insurance is classified into 12 groups, which are:
- Aviation Insurance
- Engineering Insurance
- Home (Fire Domestic)
- Fire and Industrial Insurance
- Public Liability Insurance
- Marine insurance
- Motor Private or Commercial Insurance
- Personal Accident Insurance
- Theft Insurance
- Work Injury Benefits
- Medical Insurance
Life insurance is classified into
– Ordinary/Individual Life Insurance
– Group Life Insurance
– Pension/Retirement Plans
– Investment/Unit Linked Contract
– Funeral Insurance
If you are considering getting insurance in Kenya, here is a list of the top 10 insurance companies you should consider (in no particular order).
1. APA insurance
APA insurance emerged after the merger of Apollo Insurance and Pan Africa Insurance and is a subsidiary under Apollo Investments Limited.
Since its inception in 1977, they have continued to provide numerous services to enhance the quality of life of their clients. They offer marine, motor, health, agriculture insurance, and many more.
Cytonn’s 2019 report places APA Insurance in the second position in terms of market share for the General Insurance business with 8.3% and APA insurance is also rated as the insurance company with the best customer service.
2. CIC Insurance (Co-operative insurance)
CIC Insurance is one of the well-known insurance and financial service firms with the best ICT and marketing initiatives in Kenya.
The insurance company was founded in 1978 and was formerly known as Co-operative Insurance Services Ltd., and it has since then been in business for almost three decades.
With about a thousand satisfied customers in their portfolio, the company also prides itself on being good for students going for industrial attachment where insurance cover is needed.
They have about 50+ products that range from life insurance, asset management, health insurance, general insurance, and a lot more.
Today, CIC is recognized as being among the best home insurance companies in Kenya.
3. Jubilee Insurance Company Limited
This is the first amalgamated insurer in East Africa and Kenya. It is also the number one in medical insurance.
In 1984, it was listed on the Nairobi Stock Exchange and cross-listed in 2005.
It currently has eight branches in Nairobi, with plans to extend to other countries.
Jubilee Holdings Ltd is a Mombasa-based insurance company that provides various services to both individuals and businesses.
Their insurance solutions are focused on providing affordable and high quality policies to their clients.
Jubilee has placed itself as one of Kenya’s leading insurance firms, with offices in Uganda, Tanzania, and Burundi with over 450,000 clients.
The firm has also won numerous awards and recognition over the years for its outstanding leadership, customer service, and risk management.
When it comes to choosing the right insurance provider for organizations and employees in Kenya, Jubilee Insurance Ltd is known as the best and safest option.
Britam, also known as The British-American Insurance Company, is a high-profile financial organization established in Kenya that offers cutting-edge insurance services.
In 2019, Britam was recognized as the best life insurance company by the Association of Kenya Insurance (AKI) Agents.
Today, Britam is Kenya’s most flexible and best life insurance company listed on the Nairobi Securities Exchange.
With a presence in Kenya, Tanzania, Uganda, Malawi, Rwanda, Mozambique, and South Sudan, the insurance company has been able to set itself apart from competitors by maintaining its integrity and focusing on improving its core values.
In a 2014 Kenyan Insurance Regulatory Authority report, Britam was ranked second with a market share of 11.2%.
Also, in Cytonn’s 2019 report, Britam ranks first in the long-term insurance business market share with 24.7%.
5. Madison Insurance company
If you’re looking for a good insurance firm for your child’s education, Madison Insurance Company should be your first choice.
One of the educational programs it offers is the Bima ya Karo Educational Program, and it is also an excellent insurance choice for parents who want to set aside money for their children’s education.
Using Madison group insurance gives your child the privilege of pursuing their ambitions in the future.
The company currently has an asset base of up to Ksh 5 billion and offers most of the top insurance products in Kenya at competitive prices.
Their services range from life to general insurance, including motor and travel insurance, domestic packages, and marine insurance.
6. Kenindia Assurance Company
Kenindia was formed in 1978 when Indian insurance companies operating in Kenya decided to merge and form a scheme that had ethical and financial maintenance from the local trade elite.
After 1979, the following became the main shareholders: Life Insurance Corporation of India with 10.21 percent, New India Insurance Company with 9.9 percent, General Insurance Corporation of India with 9.19 percent, and National Insurance Company Ltd. with 9.19 percent of shares.
7. Blue Shield Insurance Company
Blue Shield insurance is rated among the top 10 insurance companies due to its high degree of provision of insurance products, which include general insurance, agricultural insurance, and life insurance.
8. UAP Provincial Insurance Company
UAP is one of the leading life insurance firms in Kenya, with established branches in Uganda and South Sudan.
The top-class life insurance company also offers other products like commercial insurance, tailored insurance, healthcare, marine, pensions, and personal insurance.
9. AAR insurance
AAR Insurance is one of Kenya’s oldest and most reputable medical insurance companies.
It began its operations in the country in 1984 with the initial plan of evacuating accident victims by air and road.
However, AAR has expanded its offerings to its consumers over time. With the AAR health insurance policy, individuals and companies enjoy a comprehensive cover that includes chronic conditions; maternity, and psychiatric treatment consultations.
10. Insurance Company of East Africa (ICEA)
Insurance Company of East Africa (ICEA) is a member of the First Chartered Securities Group that focuses on insurance, banking, manufacturing, shipping, property and agriculture.
Benefits of insurance
There are so many ways in which one could benefit from insurance.
1. It covers unforeseen circumstances.
2. It helps with easy cash flow in terms of paying for damage or loss of properties.
3. More investment opportunities.
4. You can enjoy health coverage for chronic and terminal illnesses.
5. Peace of mind.