Kimuli Gavin’s Post

INSURANCE The insurance industry provides solutions for much more than the standard areas, such as life cover and general insurance cover. Protection planning is a key area of insurance products. These products range from payment protection policies designed to pay out in the event that an individual is unable to meet repayments on loans and mortgages, to fleet insurance against the risk of an airline’s planes crashing. Insurance companies collect premiums in exchange for the coverage provided. This premium income is invested in equities and bonds and, as a result, the insurance industry is a major investor in both equity and bond markets. Insurance companies will also hold a large amount of cash to be able to satisfy any claims that may arise on the various policies and, if required, will liquidate investment holdings. Most African countries have a thriving insurance sector and in Uganda we have Prudential, UAP, Sanlam, ICEA, NIC etc. The sector is highly regulated by Insurance Regulatory Authority to ensure adequate protection of the rights of the insured and observances of the global/standard insurance practices.

Insurance density and insurance penetration are the key measures of a country's level of development in the insurance sector. Insurance density is the ratio of insurance premiums to a country's population. It shows how much each person in a country spends in insurance in terms of premiums. On the other hand, insurance penetration measures the contribution of insurance premiums to the Gross Domestic Product(GDP) of a country in percentage terms. As of 2022, Kenya's Life and Non-life insurance penetration rates were 1.1% and 1.2% respectively. As of 2020, the insurance density in Kenya was at KES 4787. At 2.3% IPR, which is below global averages, Kenya leads its East African counterparts in terms of insurance uptake .

The rate of insurance uptake for businesses globally stands at 7%, and it is only 3% in Africa. It is even lower than the regional rate in Kenya, standing at just 2.3%. This signals a deep distrust or misunderstanding of the role of risk-transfer in an economy. In an interview for The Kenyan Wall Street‘s “Investing like an Executive” series, Lokonyo Stephen, the Managing Director of First Assurance says that leveraging on new distribution and marketing options – as well as exploring the mostly ignored MSMEs sector – could unfurl a new revolution in the insurance industry. “The structure of an insurance company should design products based on its customers’ needs. You are the primary carrier of that risk, which means that your customers know you as the partner they have transferred their risk to,” Lokonyo says. https://lnkd.in/dT4Z2KZm

Latest Updates in the Nigerian Insurance Industry Stay informed on the recent developments impacting the insurance sector: 🔹 Tough Economy Hits Retail Insurance Business in Nigeria 🔹 NAICOM’s New Chief, Olusegun Omosehin, Lays Groundwork for a Stronger Insurance Sector in First 100 Days 🔹 Nigerian Insurance Sector Hits Historic N1 Trillion Milestone Amid Economic Challenges 🔹 NAICOM Outlines Strategic Priorities to Transform Nigeria’s Insurance Industry 🔹 Annuity Payments Delayed as African Alliance Insurance Plc Leaves Retirees Struggling For the full story and more details, click the link below https://lnkd.in/dZcS5QqR

Here are the 10 interesting facts about insurance. 1. Did you know that the concept of insurance dates back to ancient Babylon around 2100 BC? That's even before the existence of the Nok culture in Nigeria! 2. The first insurance policy was written in 1680 by Lloyd's of London, insuring a shipment of goods. This was around the time of the Transatlantic Slave Trade, which had a significant impact on Nigeria. 3. The term "insurance" comes from the Latin "assecurare," meaning "to make sure." In Nigeria, we say "make sure" too - it's all about being prepared for the unexpected! 4. Life insurance was first offered in the US in 1762 by the Presbyterian Synod of Philadelphia. Meanwhile, in Nigeria, traditional forms of social insurance, like the "esusu" system, have been around for centuries. 5. The first auto insurance policy was issued in 1898 by Travelers Insurance Company. That's around the time when cars first appeared on Nigerian roads! 6. Insurance is a growing industry in Nigeria, with over 50 insurance companies operating in the country. 7. The Nigerian insurance market is worth over ₦500 billion (approximately $1.2 billion USD). 8. The most expensive insurance policy ever written in Nigeria was for ₦10 billion (approximately $25 million USD), covering a prominent business tycoon's life. 9. Insurance companies in Nigeria use actuarial tables to calculate the likelihood of events, like accidents or death, just like in other parts of the world. 10. The insurance industry employs thousands of people in Nigeria, providing jobs and contributing to the country's economic growth. We hope you find these facts interesting and relatable! Do you have any specific questions about insurance or would you like more information? Then drop a comment for us in the comment section or DM us . . #insurance #insurancefacts #insurancebrokers #riskmanagement #thriveinsurancebrokers

Insightful read on #Ethiopia's insurance industry & the planned establishment of an independent regulatory agency for the sector 👇 "...The stagnation in Ethiopia’s insurance industry is particularly striking in contrast with the population of over 120 million. Insurers boast a measly penetration rate of 0.3 percent, and even that is largely owed to legally mandated third-party motor insurance policies. "The figure pales in comparison to the global average of 7.2 percent and even the regional average of 1.08 percent. The picture grows dimmer when considering insurance density – three dollars in Ethiopia compared to USD 764 in South Africa and USD 48 in Kenya. "This stark contrast paints a clear picture: Ethiopia’s insurance industry remains significantly underdeveloped and neglected even within the frame of its own financial landscape. "With the planned establishment of an independent regulatory body on the horizon, many are asking: can it truly address the stagnated development of Ethiopia’s insurance industry? Proponents of the independent regulator believe it holds the key to unlocking growth and addressing critical issues. But how, in reality, will this new body translate into tangible benefits for insurers?" #InsuranceServices https://lnkd.in/gjM_uFka

Strengthening Uganda's insurance sector a path to economic resilience. it's with great joy to bring to your attention my new published opinion by #smlugnews which is about the view of the national budget and how it will uplift the insurance industry. https://lnkd.in/dZqSFKtu #nationalbudget #insurance #economicresilience

[Choosing the Right Insurance Plan in Nigeria] Insurance plays a vital role in safeguarding individuals and businesses against unforeseen events and financial losses. In Nigeria, . . . https://lnkd.in/dRKFAt9x

I had the privilege of giving a presentation on the importance of insurance during this time of recession. From my experience, it's evident that a significant number of Nigerians are unaware of the benefits of having insurance coverage. Unfortunately, those who are aware often hold the belief that insurance companies do not pay claims. However, I confidently stated that many insurance companies do pay claims. This comes from my personal experience of processing clients' claims and ensuring they receive payments in their accounts promptly. At one point, the moderator asked, “Do you want us to assume that insurance companies pay claims in Nigeria?” I responded, “Mr. Moderator, don’t assume—believe that insurance companies pay claims in Nigeria.” One strategy I believe insurance companies can adopt is to strengthen their market penetration. For instance, they should ensure that all road users are well informed about the benefits of Third Party Motor Insurance. Emphasizing the N3,000,000 Third Party Property Damage cover got my audience's attention. They were amazed to learn that a N15,000 premium for private motor insurance provides this substantial coverage. If people knew this, perhaps there would be less stress and confusion following road accidents.