New rules to curb unethical practices in insurance industry
Posted Wednesday, August 1 2012 at 11:48
The Insurance Institute of Kenya (IIK) has launched a code of best practice that will be followed by all professionals in the sector.
IIK director Aggrey Mulumbi said the 350 members of the professional body will now be required to sign and follow the code of conduct. Another 600 professionals work in the sector but are not IIK members.
The code launched Tuesday evening addresses integrity, customer service, confidentiality and compliance with regulations.
“The perception of insurance has been negative, especially by customers and this follows some unethical practices done by some professionals,” said Mr Mulumbi.
According to the Association of Kenya Insurers, the penetration of insurance in the country was estimated at 3 per cent as at the end of 2010.
The industry at that time had 46 licensed insurance companies, 22 which wrote non-life insurance business only, nine which wrote life insurance business and 14 which offered both.
The industry has been undergoing reforms aimed at improving corporate governance in a bid to enhance public confidence.