| dc.description.abstract | The insurance industry in Kenya has been neglected by successive governments in terms
of reform and development. This stems from the colonial period when the colonial
government established a solid banking foundation in Kenya to serve the settlers while it
sourced all the insurance they needed from overseas. Over the years the industry has been
on the news for reasons such as ethics, company collapse, insolvency, liquidation, court
battles, fraud and mystery in its nature and operations. The regulatory regime seems to be
invisible and yet there is an Insurance Act, offices and organizations set up by the Act to
oversee the industry.
Regulating this industry is of immense importance and crucial for its survival. It is
through regulation that the industry may deal with ethical issues, economic downturns,
winding up, insolvency, liquidation, political interference and increased rivalry between
players. An effective and sound regulatory and supervisory system is necessary to protect
policy holders, to maintain an efficient, safe, fair and stable insurance market that
promotes growth and competition in the sector. There has been a general perception that
the state isn’t doing enough about the state of the industry at the expense of innocent
policy holders. This research therefore, sought to analyze the extent to which the state has
succeeded in regulating the insurance industry in Kenya and to establish the factors that
affect effective regulation of the insurance industry in Kenya | en |
