Insurance companies heavily invest in life cover

The insurance business in Kenya recorded three quarters of its total investments in the life insurance cover category, signifying its place in the growth of the industry.

According to the Economic Survey 2015, life insurance business investments stood at sh225.3 billion, constituting 63.9 percent of the total industry investments in 2014.

The survey records that this was followed by general business investments which stood at sh127.1 billion, constituting 36.1 percent of the total investments for the insurance industry.

The revelations could mean that the demand for life insurance outstrips all other insurance demands, informing insurance companies to invest more in various life cover products to lure more customers to them.

It could also mean that the industry feels the investments in the sector are prime, deserving of more attention whose rewards are rewarding.

The insurance sector’s gross premiums grew by 20.4 percent to record sh157.8 billion during the year under review.

The premium income reported under life insurance business amounted to sh56.5 billion while general business premiums were sh101.3 billion, reads the report.

It adds that

Total policyholder benefits under life business amounted to sh17 billion during the same period. The change in claims experience was consistent with the industry business volume expansion.

 

In 2014, the commissions paid by the insurers amounted to sh9.3 billion compared to sh7.4 billion reported during the previous year.

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