Equity entering general and health insurance end of June
Equity Group CEO James Mwangi during the announcement of the bank's 2023 financial results at the investor briefing at Equity Centre in Nairobi on March 27, 2024. PHOTO | WILFRED NYANGARESI | NMG
Equity Group is set to roll out its general and health insurance arms by the end of June this year, raising its stake in the underwriting industry after launching life business in 2022.
In May 2023, Equity said it had got approval from the Insurance Regulatory Authority (IRA) to set up a general insurance company, opening the way for the lender to start covering risks such as car accidents, diseases, fire, and theft.
Equity Group CEO James Mwangi said at an investor briefing last week that the general insurance business will operate on a no-exclusion basis, especially on medical cover.
“We are projecting by the end of June to have life and general insurance, which will also have health, completing the entire offering so that we can protect lives and the wealth that we have helped to build,” said Mr Mwangi.
“The supply side of the health insurance has been provided already by Equity Afya, so it is now a question of having to underwrite the policy.”
The bank will run the general insurance unit under its Equity Insurance Group arm, which already operates the life insurance subsidiary known as Equity Life Assurance (Kenya) Limited (Elak).
Elak’s licensing marked Equity’s first direct venture into the insurance sector after more than a decade as an agent of established underwriter Britam Holdings through a bancassurance agreement.
Elak was operationalised in March 2022, and by the end of the third quarter of 2023 had a two percent life insurance market share, ranking it 13th in the industry.
Kenya’s Sh269 billion annual insurance market sees general insurance hold a larger share of premiums, due to medical and mandatory motor policies. Motor and medical insurance, however, have huge claims and high loss ratios, raising the cost of premiums and contributing to the low insurance penetration of 2.3 percent in the country.
Equity plans to use its network of bank agents to sell its policies.
