The low uptake of insurance products in Kenya is due to mistrust that exist between clients and insurers in the market, the Association for Kenya Insurers has said.
The insurers' umbrella body said this coupled with inappropriate insurance products, lack of customer awareness, and the lack of proper premium payment systems have contributed to the low insurance penetration.
"We are encouraging insurance firms to develop affordable products in order to target clients at the low end market segment because many of them are not insured," AKI chairman, Mark Obuya said during this year's insurance companies chief executives forum in Nairobi
He said the association is carrying out market research so as to establish the needs of customers and to provide insurance firms with data that will enable them to develop customised products.
"We are encouraging insurers to adopt technology to improve the delivery of services and AKI is currently conducting awareness campaigns through media and roadshows so as to inform people about the available products and services," he said.
He added they are hopeful that the removal of travel visa across the East African region will boost the uptake of business tourism insurance product which is still new.
"Business tourism offers travel and personal accidents insurance cover and a medical cover while on a trip," he said.
He said the low income earners are the next frontier market for the insurance industry and insurers are planning to become guarantors in a bid to enable everybody to get loans from financiers.
"We already have performance guarantee in terms of custom bonds, contractors and risk insurance which will give security on loans for people who don't have asset security," he said.