Nairobi — Insurance of property against terrorism policies is expected to grow significantly following the Westgate siege that has left about 67 dead and 175 people injured. Association of Kenya Insurers Chief Executive Officer Tom Gichuhi on Monday said more insurance companies are keen in providing this cover due to interest from customers.
"The current terror attack is likely to be a wakeup call especially for businesses with no terrorism cover and those who have terrorism cover to evaluate their current contract to make sure they are properly covered," Gichuhi said.
Gichuhi said even with the increasing demand the price of the policy is not expected to increase. On his part, Commissioner of Insurance Sammy Makove said currently there are about 15 insurance companies offering terrorism covers out of 46 of them and more are planning to offer the cover.
"We will not raise premiums, insurance depends on experience and trends, unless it becomes an issue that happens every year which is unlikely," Makove said. He said the uptake of insurance has been slow even with its relatively affordable price and there is need for more businesses to be insured in this policy.
"The insurance penetration as measured against GDP is 3.19 percent having increased from 2.7 percent in 2008 and that there still remains potential to raise this," he said. Makove revealed that the insurance industry posted a 15 percent growth in the first half of 2013 with the cumulative industry gross written insurance premium being at Sh63.3 billion.
"The increase can be attributed to the various consumer education activities that the Insurance Regulatory Authority and individual companies have engaged in," he said. He said that there is need to keep on educating consumers on the available insurance products so that they are empowered and are able to make informed choices about which insurance products may be relevant.
"Majority of Kenyans still do not have insurance covers thus insurers should identify needs of consumers and address them through the development of suitable insurance products," he said. They were speaking on Monday at the opening of the insurance village at the Nairobi International Trade Fair.