Kenyan Insurance authorities issue new rules to improve confidence in the sector

May 16, 2013

The Insurance Regulatory Authority (IRA) has issued new guidelines aimed at increasing customer protection and strengthening confidence in the insurance sector, whose market penetration only stands at three per cent in Kenya.

The Insurance Regulatory Authority (IRA) has issued new guidelines aimed at increasing customer
protection and strengthening confidence in the insurance sector, whose market penetration only stands at three per cent in Kenya.

Insurance product advertisements, employees and agents will face closer scrutiny when the new rules come into effect from June 30th, The Star reports.

"The objectives of these guidelines are to strengthen public trust and consumer confidence in the insurance sector and minimise the risk of insurers adopting business models that are unsustainable or pose reputational risk," states the document.

The rules place the ultimate responsibility of the fair treatment of customers on the board and senior management of a company.

The IRA has also directed that all insurance companies that are running advertisements on any media platform provide for an independent review of these messages to determine their factuality and ensure message clarity.

Leaders in the Kenyan insurance sector have been working at improving the sector image and standard of regulation, as insurance has attracted a negative perception in recent years due to "unethical practices" sometimes being carried out by professionals in the industry, according to an official from the Insurance Institute of Kenya.ADNFCR-2976-ID-801586160-ADNFCR