The underwriting practice of life offices response to HIV/AIDS in Kenya

Abstract

The literature reviewed showed that HIV/AIDS has affected the Life Assurance fraternity world over. Whereas studies on the effect of HIV I AIDS on Life Assurance have been conducted in the developed world, very little has been done in Kenya. This project sought to investigate the underwriting practice of Life Offices in response to HIV/ AIDS in Kenya. The objectives included the determination of whether HIV/AIDS has had an effect on the life underwriting practice in Kenya and the response measures instituted by life offices due to the epidemic.The research finding show that indeed HIV/AIDS has affected life underwriting practice especially in the following dimensions: shortened average duration of a policy, proposed being declined cover, high prevalence in the economically productive, underwriters having low HIV test limit and low Free cover limits, most scheme members unwilling to go medical tests, increased restriction of cover falsification of medical reports by medical profession, increased medical costs,conservative retention capacity levels and group business reporting most claims. In addition the findings indicated experience rating reserving, additional questions, none acceptance of group life without accompanying pension scheme and restriction cover were the most important response measures instituted by Kenyan Life Offices