The 2021 Financial Access Household survey shows the proportion of the population that says it cannot afford insurance has almost doubled over the last five years, to 65.4 percent from 35.2 percent in 2016.
The survey was carried out by the Central Bank of Kenya, FSD Kenya and the Kenya National Bureau of Statistics between 2019 and 2021.
The latest industry data shows that Insurance penetration stood at 2.34 percent in 2019, the lowest in 15 years.
Two-thirds of Kenyans without an insurance policy say they are unable to afford premiums, keeping penetration low despite efforts by the sector regulator to educate the public on the need for cover.
The 2021 Financial Access Household survey shows the proportion of the population that says it cannot afford insurance has almost doubled over the last five years, to 65.4 percent from 35.2 percent in 2016.
The survey was carried out by the Central Bank of Kenya, FSD Kenya and the Kenya National Bureau of Statistics between 2019 and 2021.
At the same time, the proportion saying they do not have insurance have cover because they do not know about insurance has dropped to 14.3 percent, from 40.9 percent in 2016.
“The main reason cited by the respondents for not having any form of insurance policy is the inability to meet the cost of insurance policy in terms of premiums payments, which the industry regulator may need to address in order to expand inclusion,” the report stated.
“The significant decline in response rates by those who reported not having knowledge of insurance and those not appreciating the benefits of having insurance between 20216 and 2021, reflects gains made by Insurance Regulatory Authority through public education initiatives.”
The latest industry data shows that Insurance penetration stood at 2.34 percent in 2019, the lowest in 15 years.
The insurance penetration reached its peak in 2013 when it stood at 3.44 percent, but the rate has been declining in the last six years on the back of an economy that has recorded a massive loss of jobs and growth of the informal sector.
The industry has also been faulted for the lack of innovation to drive uptake of insurance cover.
The industry regulator has been collecting proposals from the public, policyholders and insurers to guide in amending the Insurance Act to make it more responsive to the needs of stakeholders.
