Barclays to start selling insurance products in Kenya
Barclays Bank has requested a licence from the Insurance Regulatory Authority to conduct insurance business in Kenya, in particular life insurance business.Barclays Bank has requested a licence from the Insurance Regulatory Authority to conduct insurance business in Kenya, in particular life insurance business.
The regulatory body confirmed that the bank has applied for a licence but did not give further details on whether it is applying through a Kenyan subsidiary or as Barclays Plc, The Star reports.
More and more banks in the country are looking to enter the insurance market in Kenya, after a law on bancassurance was approved in 2013,
allowing lenders to sell covers on behalf of various underwriters to their clients.
Insurance market penetration in Kenya remains low at 3.2 per cent of the gross domestic product.
According to a recent AM Best Company report, Kenya, Nigeria and Ghana have a "huge potential" for insurers.
The report finds that their attraction comes from their large growing populations and developing economies, while the general market is relatively untapped among consumers.
The report also cites regulatory reforms undertaken in recent years by several African countries that helped facilitate access to African markets. Between June 2011 and June 2012, 28 countries in sub-Saharan Africa have implemented at least one regulatory reform to facilitate business in the insurance sector.