Jubilee Government Reforms - Newly introduced Local Marine Insurance is a major success

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Marine cargo insurance protects goods from the risk of loss, damage, pilferage and theft during transit by sea, land and air from the port of origin to the final destination/FILE

By KENNEDY KANGETHE, NAIROBI, Kenya, Apr 24 – Marine cover business has registered huge gains already recording premiums worth Sh700 million in January and February following the government’s directive demanding importers to sign up with local underwriters. This is according to the Acting Commissioner of Insurance Godfrey Kiptum who sees this as the game changer in the industry, with players fighting for business estimated at Sh20 billion.

“We have are already seen gains from Marine insurance and we are expecting this will increase the penetration of insurance in the year from the current 2.97 percent of Gross Domestic Product (GDP),” said Kiptum.

In 2016, marine insurance underwrote premiums worth Sh2.1 billion. The law (Section 20 of the Insurance Act)- which was long ignored before it was recently activated by Treasury Cabinet Secretary Henry Rotich – is intended to reverse the scenario in which an estimated 90 percent of importers use policies offered by foreign firms. Marine insurance is a policy that provides cover for goods while in transit either by sea, air, rail or road up to the warehouse. It is one of the oldest insurance covers in the world. Marine cargo insurance protects goods from the risk of loss, damage, pilferage and theft during transit by sea, land and air from the port of origin to the final destination. Several Kenyan insurers have unveiled their marine insurance products in a bid to get a piece of this new business. The Association of Kenya Insurers (AKI) in December also directed that all marine insurance business must be transacted online. Gradually all insurers offering marine insurance online will be linked to a single window operated by KenTrade. Kenya’s main imports are petroleum, manufacturing and agricultural inputs, electronics, pharmaceuticals, machinery, and textiles.

One of The biggest marketing lies is that Insurance protects from losses. Logicaly speaking

Jubilee Government Reforms - Newly introduced Local Marine Insurance is a major success TO THE INSURANCE FIRMS. Nothing has really changed and car importers are yet to be affected since KRA,NTSA and Insurance companies can’t agree on how to share the spoils. But you will never hear this on the mainstream media.

Step in the right direction. Why pay foreigners billions in premiums when we can retain those funds locally

But will local underwriters be able to pay claims such as Glass imports, construction equipment etc. incase of losses/delays? We wait and see…

Why not. Remember they underight for the same assets once on kenyan soil