It only requires updating with the help of new data that are constantly retrieved from publishers databases and other sources. Who health financing reform in kenya assessing the social. Feb 07, 2012 the 2008 kenya guide gives the top four insurance companies in kenya today as. We trace the historical development of the national health insurance nhi policy, illuminate stakeholders perceptions on the design to inform future development of health financing policies in kenya.
Historical development of insurance legislation in kenya. The insurance regulatory authority ira is the regulator of all insurance companies in kenya, with a mandate to regulate, supervise and develop the insurance industry in kenya the minimum paidup capital have been set at kshs. The study adopted the explanatory research design and the population of study was 30 shopping malls in nairobi county, kenya. The 2014 kenya demographic and health survey 2014 kdhs was implemented by the kenya national bureau of statistics from may 2014 to october 2014 in partnership with the ministry of health, the national aids control council nacc, the national council for population and development ncpd, and the kenya medical research institute kemri. Insurance as a formal service began in great britain when merchants transporting goods overseas came together to finance their voyages.
Rwanda, burkina faso, kenya, nigeria, and south africa have either started a national health insurance program or are in the advanced stages of starting one. Kenya is the healthcare frontrunner in east africa. The key players regulated by ira are insurance companies, reinsurance companies, insurance brokers, insurance agents, motor assessors, insurance investigators, insurance surveyors, loss adjustors, claim settling agents and risk managers. In 2011 during the insurance awards, aig won winner best insurance company general insurance and. Trade union services and benefits in africa edited by. Law applicable to contracts of insurance and place of payment. Amounts and values in policies to be expressed in kenya currency. Sanlam kenya plc was founded on 26 october 1946 as the indo africa insurance company limited and began writing life insurance business in 1947. This means that there is a lot more potential to increase the number of policyholders to 10 million in the next 3 years. The goal of this kenya health policy is attaining the highest possible standard of health in a manner responsive to the needs of. Socalled bottomry contracts were known to merchants of babylon as early as 40003000 bce. The history of street signs now that youve gotten the rundown on car insurance, learn more about the beginnings of street signs. We actively supported the sector as they prepared to adopt the standard for 2005 financial statements, and in december 2004 held a seminar for our insurance sector contacts on the implications of the standard. The history of insurance traces the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile accidents, and medical treatment the insurance industry helps to eliminate risks as when fire insurance providers demand the implementation of safe practices and the installation of hydrants, spreads risks from individuals to the larger.
This has been the case with the laws governing the insurance sector in kenya. This translates to approximately 10% contribution from the fund to the overall public expenditure in health. Insurance as a risk management tool is very important in the socioeconomic development of nations and people. Three malls were selected for the purpose of this study. Insurance originally evolved as a commercial instrument, and it was not until after 1666, as a result of the great fire of london, that insurance for households, aptly named fire insurance, emerged. It also included some reinsurance reform and changed the basis for regulation and taxation of surplus lines insurers. List of insurance companies in kenya answers africa. Basically, the history of insurance is grounded in people finding ways to reduce risks and respond to unexpected and often unfortunate incidents. An historical perspective the kenyan insurance act, cap 487 laws of kenya. There exists a conflict of interest between policyholders and shareholders, in that policyholders expect their claims to be paid from the insurance fund while investors shareholders expect to make profit from the same funds. The insurance regulatory authority whose mission is to effectively and professionally regulate, supervise and develop the insurance industry regulates the activities of insurance companies in kenya while the association of kenya insurers established in 1987 as an independent nonprofit making consultative and advisory body is the. Risk management is a relatively recent corporate function. Insurance regulation in kenya introduction insurance is a business of trust and can be abused. Its the latest chapter in the 5,000year history of our industry.
Apr 23, 20 bancassurance in kenya a student perspective posted on april 23, 20 by walkingbusiness bancassurance entails the use of commercial banks by insurance companies to sell and distribute insurance covers. The application of ifrs 4 insurance contracts in 2005 was a significant challenge for the global insurance industry. Over the years the pioneer assurance ltd has continued to provide kenyans with financial security and peace of mind. Thats right on the eve of the new century, our humble dotcom made its own contribution to the history of car insurance. Kenya has had a history of health financing policy changes since it gained independence in 1963. There are a total of 5,155 insurance agents in kenya. Strategic plan 2014 2018 sustainable financing towards universal health coverage in kenya. History of healthcare in kenya at independence, kenya inherited a threetier health system the central government at the district, provincial and national levels missionaries at subdistrict levels local government in the urban areas. Operational risk and liquidity risk management emerged in the 1990s. The role of the insurance regulatory authority in the. In 1965, the then government took a ground breaking step on the continent.
But equally, there is no doubt that over the years, it has attracted many principles of its own to such an extent that it is perfectly proper to speak of the law of insurance. Defaults of insurer, broker or agent not to invalidate policy. Esurance reinvents insurance with online quoting and buying as the dotcom boom revolutionized business in the mid90s, insurers saw the opportunity to improve service by streamlining a complicated process. Nov 18, 2009 the study will also heavily refer to the new zealand no fault law. Presently, nigeria has 3 million policyholders out of a population of 174 million people. Effectiveness of models at play in kenya key models used in kenya ipartnerships between banks and insurance companies where the insurance company uses own staff to sell within bank branches iiuse of banks own insurance employees with an insurance desk set across the banks branches iiidistribution through a broking partner who offers. Who health financing reform in kenya assessing the.
Insurance historical development of insurance britannica. I hereby certify that the statements contained herein and in the documents submitted herewith required by section 30 or 1882 of the insurance act, 1984, and the insurance regulations 1986 are true and accurate to the best of my. However, the history of the development of commercial insurance in kenya is closely related to the historical emancipation of kenya as a nation throup, 1988. Insurance motor vehicles third party risks issue 1 8 2 if, in any case, owing to the presence of a motor vehicle on a road an accident occurs whereby injury is caused to any person, and a certificate of insurance required under this act is not inspected by a police officer at or near. It has been observed that the contract of insurance is basically governed by rules which form part of the general law of contract. Unlike the current insurance regime in kenya where an injured party has to file a suit to recover damages in regard of a motor accident, the no fault system offers faster settlement of damages and is more efficient as it avoids delays, expenses in litigation and uncertainty. Historical account of the national health insurance. This paper traces through these historical developments. Insurance industry report for the period october december. Awareness of insurance and why it is needed is generally low in most countries. In 1963, the company became the first insurance company to list its shares on the nairobi securities exchange. History of agricultural insurance in kenya by the public sector in agric insurance in kenya apart from the supervisory role of insurance regulatory authority there was also very little interest from private insurers in kenya for agric insurance, save for the traditional indemnity. Ira is the insurance regulatory authority an autonomous government institution created through an act of parliament ira started operations in may 2007. But challenges also came from the economy and its recurring crises which at times caused bigger losses than the worst insured catastrophes.
Healthcare financing through health insurance in kenya equipped to manage the collection of contributions, support the process of identifying entitlements, arrange for access to the services to which. The health insurance market structure in kenya is comprised of private healthcare insurance schemes of several varieties as well as the nhif. We would like to thank all those who participated in the survey, for their willingness to provide frank and open answers. With the conquest of kenya as a british colony complete, settlers initiated various economic activities, particularly farming, and extraction of agricultural products huxley, 1990. The law basically states that all goods being shipped into the british colonies should be carried by ships owned by british. In the last five years, the life insurance market in kenya has experienced growth in both the. Reforming the insurance regulatory framework in kenya.
Top six challenges facing the insurance sector in kenya. The policy recognizes that kenya is a member of the common market for east and southern africa, the east african community and the intergovernmental authority on development and therefore. Financial institutions, including banks and insurance companies, intensified their market and credit risk management activities during the 1980s. Insurance is an important part of the financial sector. One financing mechanism, which has dominated uhc reforms, is the development of health insurance schemes.
Kenya health policy 2012 2030 iii foreword the kenya health policy, 2012 2030 gives directions to ensure significant improvement in overall status health in kenya in line with the countrys long term development agenda, vision 2030, the constitution of kenya 2010 and global commitments. While insurance was common in europe at the time, the first insurance in america didnt come around until the 1750s. However, the history of the development of commercial insurance in kenya is closely related to its colonial heritage. Insurance in some form is as old as historical society. The history of the national highway system read more about the greatest public works project in history. Requirements to use ifrs standards are incorporated into regulations issued by various governmental regulatory bodies, including the central bank of kenya s prudential guidelines and regulatory guidelines issued by the insurance regulatory authority of kenya ira, the capital markets authority of kenya cma, and the retirement benefits authority. Kenyas listed insurance companies analysis cytonn fy2015. Although kenya is a frontrunner in the region in terms of economic and technical developments, the country still only has a prepaid healthcare coverage of about 25%.
We have stood strong to provide insurance services to kenyans regardless of many economic changes and difficulties that the country has gone through. However, the history of the development of commercial insurance in kenya is closely related to the historical emancipation of kenya as a nation. The aftermath of the great fire saw the creation by dr. Historical milestones are helpful to illustrate its evolution. It spells out the longterm strategic imperatives and the agenda for kenyas health sector. The white settlers invested largely in the kenyan land especially farming and agriculture.
Strategic plan 2014 2018 national hospital insurance fund. New talent will be required, and africanbased insurance actuaries will be one of the most soughtafter skill sets. Insurance cover upon change of ownership of motor vehicle. Commercial banks, through branch banking systems, dominate the kenya financial system they account for. A closer look at the healthcare system in kenya healthcare financing health expenditure. The insurance regulatory authority is a statutory government agency established under the insurance act amendment 2006, cap 487 of the laws of kenya to. The greatest factor in having life insurance is providing for those you leave behind. The institutions also lend or advance the monies deposited with them to borrowers in commerce, industry, agriculture and household sectors. Kenya has had a history of health financing policy changes since its independence in 1963. Bottomry was also practiced by the hindus in 600 bce and was well understood in ancient greece as early as the 4th century bce. Insurance penetration, measured as a percentage of. Top six challenges facing the insurance sector in kenya by september 18, 2015 7. Insurance business dates back to the colonial period when kenya was colonized by the british. With the conquest of kenya as a british colony, settlers initiated various.
What is being sold is a promise which must be kept. The online survey was supplemented by facetoface interviews with six ceos of south african insurers. A lot can be won by innovative investments in this area. An historical perspective the kenyan insurance act, cap 487 laws of kenya was enacted in 1984 and became operational in january 1987. Ghana adopted the nhis in 2003, which was fully implemented two years later 19, with relative success in enrollment, utilization, increasing access to formal services 20, 21. In the developed world, insurance is a way of life and plays a critical role in the daily lives of individuals, businesses and organisations. Subsaharan africa the evolution of insurance regulation. Insurance insurance historical development of insurance. The health insurance market structure in kenya is comprised of private healthcare insurance. Bancassurance in kenya a student perspective posted on april 23, 20 by walkingbusiness bancassurance entails the use of commercial banks by insurance companies to sell and distribute insurance covers. Kenyas insurance sector overview kenya currently has 49 insurance companies regulated by the insurance regulatory authority 20 12 20 in kenya there are a total of 49 insurance companies, 5 reinsurance companies and 198 insurance brokers. Kenya ratified on 23rd december 1994 and came into effect on 1st january 1995.
Our service will make it easy for you to pick a corporate cover for your employees, or to recommend one to your boss. Ira took up the functions of the former department of insurance charged with regulating supervising and developing the insurance industry in kenya. In 2004 and 2005, aig kenya won the association of insurance brokers of kenya s bima award on claims settlement the next award by the same body was held on 5th march, 2010 and aig kenya won the special commendation award on claims settlement. Based on our internal projections and the historical. They are regulated by the insurance regulatory authority. The history of insurance traces the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile accidents, and medical treatment. Insureafrika provides medical insurance quotes to clients seeking an individual health insurance cover, or corporate health insurance cover. We need a trade union movement that stands unwavering in the face of current systematic assaults on. Recently, significant preparatory work was done on a new social health insurance law that, if accepted, would lead to universal health coverage in kenya after a transition period. The fault insurance is always said to be a social symbol, a cultural mirror that reflects the morals of society. The outlook for regulatory reform in africa is positive, fostered by the need for a healthier insurance market. East africa insurance outlook report 20192020 deloitte. Like some african and other developing countries, there was no specific insurance legislation in kenya until 1960, when the insurance ordinance of that year was promulgated.
Financial risk management has become complementary to pure risk management for many companies. Cases from dar es salaam, in partialfulfilment of the requirement for the award of the master degree in health systems management. Strategic plan 2014 2018 national hospital insurance. In 20 kenya reformed the healthcare system and sector with the socalled devolution, meaning that the 47 counties gained a relatively high degree of autonomy. Jan 06, 2020 hammurabis code appears to be the first written insurance policy. The british america insurance co k ltd which was established in 1965, priory it offered home based services but it has now developed to a full financial service provider. There is a suggestion of reinsurance practice in the antwerp customs of 1609. The choice of reference for new zealand is informed by the commonalities of the common law legal system in kenya and new zealand and the population of both countries. Pdf healthcare financing through health insurance in. It spells out the longterm strategic imperatives and the agenda for kenya s health sector. Find out what the first written policy entailed and how the history of insurance evolved from there.