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Types of insurance

Undertaking an insurance investment  may be limited to your imagination. In fact, there are various avenues for investing wisely by taking a cover that suits you. Below are just some of the ways;
Get the protection you need, for the length of time you need it, at a price you can afford. As the name implies, this provides protection for selected term only. You can take term insurance for a number of years as per your requirement. This is called pure insurance product. The benefit is only paid if the insured person dies. If nothing happens till the term of the insurance, nothing is paid.

 

Protect your family’s financial security against accidental death or dismemberment.

 

Build cash value while protecting your life through permanent insurance. This type of life insurance is to cover the whole life. The protection is provided over one’s lifetime.

 

Accumulate retirement income through a tax-deferred account with a wide variety of investment options. Annuity is nothing but a series of payments that insurance holder gets after retirement for a fixed period. Annuity is also known as pension plan. The policy holder deposits certain premium over a fixed time and the accumulated sum is used to pay regular pension for the term. The annuity can be paid for the life or for certain years after the pension or annuity commences.

 

Save for retirement with a tax-deferred account at guaranteed interest rates.

 

Preserve your assets with insurance to cover in-home or nursing home care.

 

Protect your life while growing cash value through a wide selection of investment options.

 

Reduce or pay off your outstanding loan balance, up to the policy maximum, if you die before paying off the loan.

 

Ensure your ability to make your monthly loan payment should you become disabled due to a covered illness or injury.
Furthermore, specific insurable interests can be  subdivided into personal and commercial lines;

Personal Lines Insurance

Household

  • Standard Buildings
  • Standard Contents
  • Thatched Properties
  • Rented Accommodation
  • Home Breakdown
  • High Value
  • Holiday Home

Travel

  • Annual Multi-Trip
  • Single Trip
  • Extended Stay
  • Medical Expenses only

Motor

  • Private Motor
  • Motor Cycle
  • Classic Car
  • Tractors
  • Multi-Vehicle Policies
  • Motor Breakdown

Protection

  • Mortgage Protection
  • Payment Protection
  • Accident, Sickness & Unemployment
  • Health & Dental Plan

Other

  • Special Events
  • Caravan
  • Pet Insurance
  • Armed Forces Kit
  • Roll-a-Dice
  • Wedding Insurance
  • Twins Insurance
  • Hole-in-One
  • Lottery Wins
  • Home Breakdown
  • Small Craft & Boats
  • Keys Cover
  • Model Transport Collectables
Commercial Insurance
  • Business
  • Manufacturing
  • Wholesale
  • Leisure
  • Property
  • Contractors All Risks
  • Engineering
  • Goods-in-Transit
  • Schools
  • Charities
  • Public Liability
  • Employers Liability

Packages

  • Shops & Offices
  • Pubs & Clubs
  • Restaurants/Take-aways
  • Care Homes
  • Block of Flats
  • Property Owners
  • Guest House/Hotels
  • Surgeries (Doctors/Vets)

Vehicles

  • Vans & Trucks
  • Minibuses & Coaches
  • Taxis
  • Fleets
  • Agricultural

Other

  • Professional Indemnity
  • Legal Expenses
  • Marine
  • Credit Insurance
  • Performance Bonds
  • Contingency
  • Group Personal Accident
  • Group Health
  • Tax Investigation
  • Directors & Officers Liability
  • The Top

The term insurance may not be as complicated as it may sound. It can simply be defined as the payment of little money or fees for the purpose of protection against unpredictable expenses which are known as claims or losses.

After paying the fee your insurer will pay compensation for any losses you will incur as long as it lies within the terms and conditions you had agreed upon in the letter of contract you signed with that particular insurance company. The compensation is fully paid so it is making it beneficial to the insured.

Expenses occur when we least expect them, so it is all on the subject of risks and making sure that you reassign it to the insurer. There are several kinds of insurance products in the market today for example property insurance, fire insurance, liability insurance, famous travel insurance, medical insurance, auto insurance, mutual funds, home insurance, health, brokers, banking loans insurance and many others.

The top insurance companies in Kenya

There are very many insurance companies in Kenya today since everyone is looking for a means of earning a living. They include:

Jubilee Insurance Company Limited

This is a leading insurance company in East Africa and it has its headquarters in Nairobi located at Jubilee Insurance House on Wabera Street P.O Box 30376–00100 GPO Nairobi, Kenya; which is the capital city or Kenya. It has a strong financial ground and more than 70 years or experience.

This company is the fist amalgamated insurer in east Africa and Kenya and number one in medical insurance. It has plans to extend into other 12 countries in Africa in the coming three years. At the moment it has 8 branches spanning in the state. It was listed on Nairobi Stock exchange in 1984 and cross listed in 2005. It delivers modern results, marketing circulation and service clarifications across its high-quality individual lines, globally and life industries.

Jubilee operates with Lloyd’s which is at the moment enjoying A ratings. They put their customers at the heart of their business model. The relationship between the company and their customers is based on the single truth their clients tell them and they assume that the information is very crucial to them.

Kenindia Assurance Company

In the year 1978, there was a big landmark for the insurance industry in the area. Insurance companies for India that were operating in Kenya decided to come together and form a vibrant joint scheme which had ethical and financial maintenance from local trade elite that were leading at that time. This whole idea became certainty on December 6th 1978 when Kenindia Assurance Company Limited began.

The insurance companies operating in Kenya which joined to make Kenindia companies are as follows: oriental insurance company ltd, life insurance Corporation of India, New India Insurance company ltd and United India insurance company ltd.

After 1979 the following became main shareholders: Life insurance Corporation of India with 10.21%, New India insurance company with 9.9%, General insurance corporation of India 9.19%,and National insurance company ltd9.19% shares.

Ever since, Kenindia has developed from strength to strength in becoming a guiding household name in Kenya. By 1996, a period of eighteen years, this insurance Company had traversed the KShs. 2 billion gross first-rate income mark to be converted into the largest Insurer in Kenya that deals with non life matters. This summary is in itself a report of the amazing phase the company has arrived at in its advancement ever since that union in 1978.

British American Insurance Company

British – American Investments Company Limited (Britam), is a diversified financial services group, listed on the Nairobi Securities Exchange, with interests across the Eastern Africa region. The group offers a wide range of financial products and services in Insurance, Asset Management, Banking and Property. The product range includes: Life, Health and General Insurance, Pensions, Unit Trusts, Investment Planning, Wealth Management, Off-shore Investments, Retirement Planning, Discretionary Portfolio Management, Property Development and Private Equity.

Britam has offices in Kenya, Uganda, Rwanda, and South Sudan, and a presence in Mozambique, Malawi and Tanzania, following the acquisition of Real Insurance Company in 2014. The Group has a long heritage in providing financial services since 1920, when it was incorporated in the Bahamas. The Kenya operation was established in 1965 and has close to 50 years of service in the market.

The company has grown tremendously from a small home based service insurance company to the leading diversified financial services provider in the region, with an asset base of over Kshs. 55 billion, as at June 30, 2014. The human resource has also grown from 29 employees and 50 agents in 1980 to about 548 employees and 1,946 financial advisors as at 2014.

Pan Africa Insurance Holdings

Pan Africa insurance Company was established in the coastal town of Mombasa, Kenya by relatives of Asian basis. The first chairman was known as Mr. Ambalal Patel, who was chosen in 1954 as the Minister of the Government of Kenya Colony. The Company began their life business inscriptions in 1947.

Pan Africa insurance company was recorded on the Nairobi Stock Exchange, and it was the first Insurance Company to be lined up. Up to this minute only two insurance companies are lined up. The name Pan Africa Insurance Company Limited was acquired in 1963 mainly to be a sign of the expanded ownership.

The Company created sub branches in Nairobi, Kampala and Dar-es-salaam.
Pan Africa Insurance Holdings Limited was reformed in 2004 after the union to come up with two entirely owned subordinates

Pan Africa Holdings has possessions in surplus of three billion Kenya shillings as at end of year 2003. Pan Africa Life closed the year 2003 with a payment income of ksh 812 million and it is still aiming higher.

Heritage Insurance Company

Heritage provides short term insurance services of claim payments. It was recently deemed as the award winner for the outstanding insurance underwriter in settlement of claims as proposed by associates of the association of insurance brokers of Kenya. The GRC (Global Rating Company) has also rated it AA due to their high ability of paying.

Heritage came about when Norwich Union Fire insurance together with Legal and General insurance societies started their workings in Kenya, merged their ideas and interests to form Heritage insurance company limited. Later, the shareholding was bought by local shareholders making its ownership fully Kenyan hence locally owned.

In the middle 1990s, heritage joined forces with African International Insurance Company and obtained its new name as Heritage African International insurance company (heritage A.I.I insurance company).

APA Insurance Services

APA which stands for American Photographic Artist insurance provides insurance products that are made specifically for those photographers who are professionals. It has a strong long term relationship with carriers who are internationally top. This has helped members of APA insurance to easily access specialty sessions for photographing.

The company provides professional liability (Errors and Omissions) business owners packages and general liability policies with availability of coverages that are not compulsory together with but not strictly limited to rental equipment and/or photo equipment.

Some of other offers of APA business insurance are: Umbrella, compensation of workers, auto commercial and employment practices liability services. APA insurance services also make it possible for APA insurance members only reduced Auto individual and Homeowners insurance that is written throughout travelers insurance.

ICEA LION GROUP

ICEA LION General Insurance Company Limited is a subsidiary of the ICEA LION Insurance Holdings Limited, which was formed as a result of a merger between Insurance Company of East Africa Limited (ICEA) and Lion of Kenya Insurance Company Limited (LOK) in 2011.

The two companies were well known Insurance and financial services market leaders in Kenya and the wider Eastern Africa region. The merger resulted in the creation of one of the largest insurance groups in the region, with well established insurance operations in Kenya, Uganda and Tanzania as well as leading subsidiaries in fund management and corporate trusteeship.

A key element of this consolidation has been the establishment of separate life and non-life insurance companies in Kenya. ICEA LION Life Assurance Company is a dedicated life assurer while ICEA LION General Insurance Company is a general insurance company with both operating as subsidiaries of ICEA LION Insurance Holdings Limited.

This separation enables each entity have complete focus on its core business, for enhanced customer service, specialization, internal efficiency and competitiveness. The consolidation was also consistent with the government’s declared intention to encourage movement in this direction.

The insurance subsidiaries in Uganda and Tanzania, previously controlled separately by ICEA and Lion of Kenya respectively, also form part of the ICEA LION Group, as does ICEA’s asset management subsidiaries in Kenya and Uganda (as well as ITSL – ICEA ’ s trustee and scheme administration subsidiary in Kenya).

Our insureds, intermediaries and all our other business partners should rest assured that the ICEA LION Group is committed to continue building on the proud history and culture of innovation and excellence bequeathed upon it by its two predecessors.

UAP Provincial Insurance Company

UAP provincial insurance company operates like a life insurance company in Kenya being amongst the top most insurance companies. This company has its headquarters located in Nairobi, Kenya.

It offers several products such as life insurance, tailored insurance, commercial insurance and personal insurance. It also covers healthcare, marine and pension if insured. It has a vision of soon being Africa’s innovative financial services company and a mission of enhancing the quality of life by conveying peace of mind and financial freedom throughout an exceptionally motivated group that delivers what consumers want.

It is one of the leading companies in Kenya and has been in operation in Kenya for not less than 70 years. It has established more branches in Uganda and Southern Sudan and a big network of branches all over Kenya hence able to give prompt services to its customers countrywide.

Co-operative Insurance Company

Co-operative insurance company of Kenya (CIC insurance) was found in 1978 formerly known as co-operative insurance services ltd (CIS insurance). The changing of the name from CIS to CIC in 1999 was part of the market repositioning strategy of fully changing the then tiny insurance company to a respected and well known insurer in Kenya. It offers general and life insurance products.

The vision of CIC insurance company is be listed amongst the top 6 highly performing insurance companies in the country and to be leading in the provision of insurance services to the co-operative section.

CIC has a mission of providing competitive, high quality and relevant insurance services and products that will enhance the stability and security of financial status of their customers.

Excerpt from http://www.kenyainsurancereview.com

Competition

The 43 licensed insurance companies compete for a limited market characterized by low penetration. Kenyans’ uptake of insurance cover, both at corporate and personal level, remains predominantly in the motor, fire industrial and personal accident (mainly group medical cover) classes. This illustrates a poor attitude towards personal insurance cover in general. Low penetration of insurance in the Kenyan market, relative to other more developed markets is attributable to the following factors:

  • A general lack of a savings culture among Kenyans;
  • Low disposable incomes for the majority of the population, with close to 50% of Kenyans living below the poverty line;
  • Inadequate tax incentives that could encourage the middle classes to purchase life insurance products; and
  • A perceived credibility crisis of the industry in the eyes of the public particularly with regard to settlement of claims.

Legislation

There are several legislative and taxation changes made in recent years that have had an impact on the Kenyan insurance industry. These include increase in the minimum capital requirements for insurers, increase in the solvency margin for long term insurers, introduction of ‘cash and carry’ rules which will require that insurers shall assume risk upon receipt of the premium, relaxation of investment limits for general insurers, introduction of penalties on late settled claims, change in the rules on taxation of long term insurance business and taxation of dividend income earned by a financial institution.
Financial Reporting

The planned move to a finalized IFRS standard for insurance contracts (IFRS Phase II) represents a major overhaul of financial reporting in the industry.

Implementation of IFRS Phase reporting will be demanding. The developments also offer an opportunity to strengthen stakeholder confidence by enabling insurers to convey a single view of their business that more closely reflects the way it is run internally.

Called to account: A survey of 2007 IFRS insurance reports, suggests that many companies will need to provide considerably more risk information and explanation to meet the more exacting analyst expectations that have resulted from market events.

Human Capital

Many insurers are facing mounting skills shortages. Yet, investment in recruitment, training and career development often trails behind other financial sectors. The primary focus can often be short-term demands rather than securing the talent companies need to meet longer term strategic objectives.

Looking ahead, demographic shifts, evolving aspirations and accelerating globalisation are set to transform the shape of the labour market and could make it even harder for insurers to attract and retain good people.

In this competitive labour market, successful companies will need to develop a strategic approach to HR management capable of anticipating and responding to evolving business needs and workforce expectations. They will also need to identify and realise opportunities to differentiate benefits, career development prospects and other key aspects of their employment brand in home and emerging markets.

Mergers & Acquisitions

In an insurance sector that remains fragmented, the case for continued consolidation is strong.

While funding is likely to be challenging for some time to come, investment in M&A could help companies to develop complementary earnings streams, realise opportunities for cost-saving synergies and strengthen their presence in the regional markets.

Smart targeting, skilful execution and effective post-merger integration will be critical in ensuring the success of any deals.

“Article sourced from PWC website”

Nowadays people…

Nowadays people know the price of
everything and the value of
nothing. “Oscar Wilde”