New player joins Kenya's nascent insurance sector
IIRM Vice Chairman Vurakaranam Ramakrishna presents a gift to Ann Chelagat, Director of Market Conduct at the Insurance Regulatory Authority, during the launch in Nairobi.
Kenya's burgeoning insurance industry has registered a significant boost following the unveiling of a new player in the sector.
The entry of an Indian insurance and reinsurance brokerage firm, which collectively manages Sh39 trillion in premiums, is looking to leverage new technologies to make its mark in the country.
After years of expanding its operations in Asia, IIRM Holdings has set its sights on Kenya as part of a broader strategy to reach out to the East African region and the continent as a whole.
Founded in 1999, the company has nine offices in India as well as Sri Lanka, the Maldives and Singapore.
Although Kenya's insurance industry is experiencing moderate growth in terms of business expansion, IIRM Vice Chairman Vurakaranam Ramakrishna said they are ready to explore the burgeoning market which has huge potential.
"We will champion change and make a difference to customers to add value to the insurance industry and make a meaningful contribution to the Kenyan economy," he said at the launch over the weekend.
While it took us 15 years to transform the Indian market, Mr Ramakrishna said, it could take us 3-5 years to break even.
Technological advancements
He reiterated that they will replicate and ride on the technological advancements that have worked in the Indian market.
"We want to add value to the insurance companies, economy and corporate entities, get them better coverage, and educate them on emerging risks that are happening both at the retail and at the institutional levels.
IIRM currently operates all lines of insurance distribution from commercial lines, employee benefits, specialty lines, lenders insurance advisory services, retail lines to reinsurance broking.
Mr Ramakrishna said the company services around 2,000 corporate customers and around 200,000 retail customers.
The Kenyan insurance regulator while welcoming the new kid on the block challenged IIRM to venture into specialty classes such as aviation insurance.
“Despite being an insurance broker, you may consider the aviation sector which is a big challenge in the country,” said Ann Chelagat, Insurance Regulatory Authority (IRA) Director in charge of Market Conduct.
“We have a lot of expectations and we are keeping an eye on you to see if you will deliver on what you have promised,” she said.
Ms Chelagat pointed out that their success in Kenya will determine their penetration to other East African countries and the entire Africa.
Mr Ramakrishna expressed confidence that their global partnerships with global insurance brokers places them at the best position to offer customised insurance solutions.
“The company has formalized affiliation with London-based AmWins Global Risks. Through AmWins, we have access to not just Lloyds of London but their worldwide network,” he said.
