Equity second big underwriter of loans in its first work year

Equity Bank branch on Muindi Mbingu Street in Nairobi. FILE PHOTO | DENNIS ONSONGO | NMG

Equity Group insurance subsidiary hit Sh3.84 billion in gross premiums from the group credit business in the year ended December, becoming the second largest insurer in underwriting the risk of customers defaulting on loans due to death or injury.

The latest Insurance Regulatory Authority (IRA) data shows Equity Life Assurance Kenya, which the Kenyan banking multinational owns fully through its subsidiary Equity Group Insurance Holdings, only trailed CIC Life Assurance in this line of business.

Equity Life Assurance overtook Britam Life to account for 24.33 percent of the Sh15.79 billion credit life business behind the market leader CIC which wrote Sh4.56 billion or 31.26 percent of this segment of the business.

Sacco-owned Kuscco Mutual Assurance and Absa Life that is owned by Absa Bank Kenya followed with Sh1.67 billion and Sh1.44 billion respectively.

Equity’s subsidiary joined the insurance market last year following IRA clearance, promising “affordable, innovative and accessible” products in a market where the penetration of life insurance is low.

Group credit life policy pays off outstanding loan amounts in the event a borrower dies or suffers permanent disability.

The cover is a solution for financial institutions such as banks to lower the risk of losing money and also lightens the loan repayment burden on the borrower’s family in case of death or illness.

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