Islamic insurance recorded the fastest growth among micro-insurers in 2017 even as Britam upped its market leadership by 11.18 per cent, data from the Association of Kenya Insurers (AKI) shows.
In 2017, insurance premiums collected from low-income earners in Takaful insurance hit Sh254.52 million in gross written premiums from Sh3.71 million recorded in 2016.
This followed the enactment of the Insurance (Amendment) Act 2016, which came into force on January 1 last year.
Britam continued to dominate the market segment after posting Sh644.72 million in gross written premiums from Sh579.89 million recorded in 2016, representing over one-third of the market. Takaful insurance is offered by Takaful Insurance of Africa, which is the only Sharia-compliant underwriter in the country.
Takaful is an Islamic insurance based on Sharia law, an alternative to conventional insurance products.
“Micro-insurance was classified by the IRA in 2013 as the 14th class of general insurance. However, it was later realised that micro-insurance cuts across general and life insurance. The lobby has taken up this issue,” says AKI in the insurance industry annual report.
Last year, 11 insurance companies wrote micro-insurance compared to 10 in 2016.
Micro-insurance products cover low-income earners.