The law as it is does not properly regulate micro insurance in Kenya. The insurance act cap 487 laws of Kenya was enacted 20 years ago slight amendments having been made from that time then. In 2007 the act was amended but still failed to capture micro insurance in Kenya.
Effectively that is to mean that the current regime of micro insurance is not protected and can be scrapped by the insurance regulatory authority as they are properly within their control. It goes without say that micro insurance products are very much needed in Kenya: the farmers being the greatest beneficiaries of the products. In the pas t two years Kenyan farmers have had their work covered for any loss that may occur leading to damage of their produce. The north eastern farmers have been compensated for loss occasioned by drought in the year.
Putting that to rest, the argument is that the act should be amended to bring micro insurance on board and ensure that in as much as the farmers enjoy the low cost cover they should have places to fall back upon if they are inconvenienced by the product or to have the product regulated will lead to it taking proper root in Kenya.
Bancassurance
Sister to micro insurance is bank assurance which is a marketing mechanism that allows banks to take part in insurance business by selling their products to their customers. This is the most unrecognized practice in Kenya yet countries like china and Australia and south Africa have fully actualized it and indicated positive result in all instances why not in Kenya? Where banks are the most trusted institutions in the country.
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