| dc.description.abstract | This research project was embarked on to redress the apparent
lack of awareness, in most quarters, of what life assurance is.
Its main objective, therefore, was to investigate into the
operations of, and document, the life assurance industry In Kenya
today.
The primary information for the research was collected,
using the questionnaire and interview methods, from executives In
the life departments of the 9 companies sampled from a total
population of 19 companies currently writing life assurance In
Kenya. Whereas the findings cannot categorically be said to be
the practices obtaining In Kenya, they can, however, be
justifiably used as pointers and suggestions about the practice of
life assurance in this country.
Secondary information gathered shows that the life assurance
industry in Kenya consists of 19 insurance companies - none of which
is a pure life office. Except" for two companies which operate
"closed funds", all the companies write new business. On the market
too are numerous agents representing these insurance companies.
About 26 brokers are licensed. to operate, but these do minimal life
business except in the group and pensions lines. There are two
reassurers conducting business in the country. They, however,
handle only 30 per cent of this country's reassurance business
the rest is placed on foreign markets.
The findings show that the whole range of life assurances
(group life, individual life, credit life, industrial life,
annuities, endowments, and pensions) are offered by the insurance
companies to their clients. Group, individual life, and pensions
seem to be the major lines. Industrial life is written by only
one company in the country, whereas credit life is offered by
only a few companies. Other services, including policy loans,
mortgage loans, participation in profits, and insurance advice
are offered to clients.
The findings also show that before the assurers underwrite
a risk, they have to get material information about the proposer.
This information is obtained by use of proposal forms, agent's
report and the medical examiner's report. Several underwriting
factors are used in the selection of the risks and these include
occupation, interests, family medical history and previous
assurance history, among many others. These factors are also
used in computing the premilli~sto be charged.
The Government controls the industry through the Kenya
Reinsurance Corporation and the Insurance Companies Act. This
situation will change with the establishment of the Commissioner
of Insurance's office when the Insurance Act, 1984, comes into
operation. The Government has also participated actively in the
industry through the setting up of such state Corporations as
Kenya National Ass urance , Minet-ICDC and Kenya Reinsurance
Corporation.
Finally, the findings of this study suggest that the chief
problem facing the industry is the lack of knowledge among most
Kenyans about life assurance. Recommendations to correct this
situation include the introduction of insurance as a subject on
the curriculum of schools and colleges; and a more spirited effort,
by both the Government and Insurance Companies, to publicize
insurance in the country | en |
