Kenya: Insurance regulation reforms in place by mid-2011
The Kenyan Insurance Regulatory Authority (IRA) will put reforms in place by mid-2011, in a bid to boost the insurance sector's growth.Sammy Makove, IRA's CEO, made the announcement on December 28th 2010, the Daily Nation newspaper reports: "We now have the draft of the proposed amendments to the Insurance Act from the consultants we had hired". With a population of 40 million and a growing economy, there are numerous opportunities. But according to analysts, some gaps in the current law regulating insurance contracts, particularly regarding the protection of policyholders, has slowed the industry's growth, the Business Daily newspaper reports. The government hopes that the recommendations from consultants and the sector's major players will guide the industry towards expansion, while analysts forecast that take-up could triple if reforms are put in place. The number of Kenyan that subscribe to an insurance policy is low, and the industry will aim at people with low income to push up its penetration in the market.