Investing in bonds boosts Pan Africa Insurance’s profits

The company’s Individual Life policy premium remained flat at Sh1.5 billion unlike the corporate business that grew 50 per cent to reach Sh1.5 billion.

Stagnant growth of Individual Life was attributed to the economic downturn that was experienced globally and which affected disposable incomes of consumers.

Insurance products

The stagnated growth could also be indicative of the challenge posed by uptake of life insurance products in Kenya, pointing to the need for sustained public education on the importance of insurance products.

The company said last year’s drought served to worsen the situation because more income was used to meet the increasing food need at the time.

The company said it was considering introducing more affordable products and developing alternative distribution channels to improve business growth, with bancassurance being on the cards once the Insurance Act is reviewed.

The company said it had “encouraging results” following its decision to insure the unsecured loan portfolio and mortgage for clients of partner banks.

“This is the easiest form of banc assurance as of now, until the law is reviewed,” said Mr Gitogo.