APA Insurance premiums under political violence and terrorism (PVT) cover grew to hit Sh220 million in the five months to May as individuals and firms race to protect their businesses and assets ahead of the August 9 polls.
The premiums collected in the review period represent a 62 percent increase from Sh136 million booked a year earlier.
APA Insurance has been offering the cover after it inked a reinsurance deal with Lloyd’s of London to offer the policies in the region.
Lloyd's is an insurance market providing specialist insurance services to businesses in more than 200 countries and territories.
“We have seen the premium under PVT return at Sh220 million in the first five months of 2022 compared to Sh136 million during a similar period last year,” said APA Insurance chief operating officer Parul Khimasia.
PVT insurance covers an individual or company against physical loss and damage, as well as business disruption costs, as a result of a terrorist act or acts of political violence.
Kenya’s general elections have often been characterised by unrest and violence, most notable in 2007 and in 2017, costing businesses billions of shillings in lost earnings and damages. The risk of violence and protests usually emanates from disputed presidential election results.
Both primary underwriters and reinsurers have reported an increase in premiums for the special covers ahead of the polls.
APA Insurance issues stand-alone covers or embeds with them other policies such as motor vehicle insurance or home insurance.
The insured risks include acts of terrorism, sabotage, riots, strikes and/or civil commotion, malicious damage, insurrection, revolution or rebellion, mutiny, coups, and war.