Stakeholders in Kenya’s insurance industry have voiced strong support for the proposed Insurance Professionals Bill, 2024, which seeks to overhaul the sector by mainstreaming professionalism and eliminating unqualified practitioners. Appearing before the Departmental Committee on Finance and National Planning chaired by Hon. Kimani Kuria, industry representatives underscored the importance of injecting professionalism into the industry to improve service standards and rebuild public trust.
The Insurance Institute of East Africa, represented by Mr. Elijah Mogere, made a compelling case for recognizing the experience and skills of current industry players through Recognition of Prior Learning (RPL). Mogere argued that many experienced practitioners should not be required to return to formal education to sit for professional examinations, as their years of practical experience should be acknowledged.
Table 1: Key Proposals from Stakeholders
| Stakeholder | Proposal |
|---|---|
| Insurance Institute of East Africa | Recognition of Prior Learning (RPL) for experienced professionals |
| Kenyan Women in Insurance | Enhance professionalism and increase penetration rates |
| Bancassurance Association of Kenya | Headquarters of Insurance Institute at College of Insurance |
Mr. Mogere warned that limiting access to professional exams to those with formal insurance certificates could shrink the pool of new professionals entering the sector. He emphasized that Recognition of Prior Learning (RPL) would open doors for many experienced individuals who already possess a deep understanding of insurance practices, but lack formal academic qualifications.
Additionally, Ms. Catherine Wahome, President of Kenyan Women in Insurance, spoke in favor of the Bill, asserting that it would significantly improve professionalism in the sector. She noted that Kenya’s insurance penetration rate remains below 3%, a situation exacerbated by public skepticism and a poorly regulated industry. Wahome argued that improving regulatory oversight and elevating professional standards could rebuild consumer confidence, thereby boosting insurance uptake.
The Bill proposes that only institutions accredited by the Commission for University Education (CUE) and the Technical and Vocational Education and Training Authority (TVETA) should be allowed to administer professional insurance exams. This, stakeholders argued, could be restrictive. They called for the recognition of training acquired from international bodies such as the Australian and New Zealand Institute of Insurance and Finance (ANZIIF), ensuring that Kenyan professionals can meet global standards.
Table 2: Insurance Penetration in Key East African Countries
| Country | Insurance Penetration (%) |
|---|---|
| Kenya | 2.3% |
| Uganda | 1.1% |
| Tanzania | 0.6% |
| Rwanda | 0.3% |
The Bancassurance Association of Kenya also shared its views, advocating for the headquarters of the Insurance Institute of Kenya to be based at the College of Insurance, which currently manages professional development in the sector. The Association further suggested expanding representation on the proposed Examination Board to include key industry stakeholders, such as the Association of Kenya Insurers (AKI) and the Association of Insurance Brokers of Kenya (AIBK).
The committee chairperson, Hon. Kimani Kuria, emphasized the urgency of the Bill, noting Kenya’s low insurance penetration rate compared to global benchmarks. He stated that unqualified practitioners have infiltrated the sector, undermining trust and limiting growth. He called for immediate reforms to elevate Kenya’s competitiveness within the region and internationally.
The committee is expected to gather more feedback from stakeholders before submitting its final report to the National Assembly for debate and possible adoption.
