Browsing: Insurance sector

The post-Covid-19 era will not be good for the economy, especially the insurance sector. The economy has taken a beating and premiums are not being paid leading to lapsing of policies. Cars are not being imported therefore motor insurance premiums are being lost. Premiums from travel insurance are not being realized because airlines have been grounded…the situation can only get worse. 

Moreover, coupled with that are the moribund laws being enacted in the insurance sector deliberately crippling insurance intermediaries. The recent passing of the Tax Laws (Amendment) Act 2020 ostensibly to take care of the small man was anything but. Value Added Tax (VAT) was introduced to insurance intermediaries leading to them being the most taxed group in Kenya seeing that they are paying withholding tax and income tax at the same time.

No one bothers to find out the stakeholders’ views on these laws and the regulator needs to be held accountable for these developments because they are advisors of the government on matters of insurance. The result will be complete death of the insurance industry unless some of these laws are rescinded. Intermediaries are already looking for better things to do because the effort of their labour is neither being recognised nor bringing in any returns. Yet that seems to be the intention of the government because it appears the only group left to do insurance in Kenya will be the banks.