LONDON--(BUSINESS WIRE)--Challenging economic factors in 2020 made it a difficult year for Kenyan insurers and reinsurers. However, according to a new AM Best report, Kenya’s relatively stable economy and strengthening regulatory environment, compared with other markets in sub-Saharan Africa, are expected to continue to facilitate the development of its insurance sector.
The new Best’s Market Segment Report, “Price Competition Inhibits Growth Potential of Kenya’s Insurance Market”, notes that while low insurance penetration by international standards means the market has good long-term growth potential, stiff competition has led to price undercutting in recent years, hampering premium growth and contributing to the sector’s underwriting losses.
The report also highlights that a potential growth opportunity lies in agricultural insurance, especially as agriculture represents over one quarter of Kenya's gross domestic product and employs two fifths of the country's workforce. However, without sufficient buy-in from traditional insurers and legislators, it will be difficult to expand the market meaningfully and reach more potential policyholders. Furthermore, the industry must develop the appropriate expertise to manage the accumulation risks associated with this type of business.
To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=310747.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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