Equity Group has diversified into the insurance business with the establishment of Equity Life Assurance Kenya Ltd (ELAK).
ELAK is wholly owned by Equity Group Insurance Holdings Limited (EGIHL), a subsidiary of the group .
This is part of the Equity Group’s vision to expand its income.
Group CEO and Managing Director James Mwangi said ELAK is a full fledged Companies with separate structures and commercial agreements in accordance with the regulations of the Insurance Supervisory Authority (IRA Kenya).
Dr. Mwangi said ELAK will ensure that its insurance solutions are easily accessible using technology so that Kenyans have the freedom to access, pay for and receive the insurance solutions of their choice.
“The ELAK license comes at a very critical time as the economy is recovering from the effects of the Covid-19 pandemic. Our inspiration is to bring insurance to all categories of consumers and to make insurance accessible, affordable and inclusive, in line with our goal of changing lives, imparting dignity and expanding opportunities for wealth creation, ”said Dr. Mwangi.
Covid -19 was the biggest setback for many households in their quest for economic independence.
ELAK promises to invest heavily in consumer education to provide Kenyans with knowledge to To help you make the right insurance decisions for you and your businesses and to use insurance as a key component to reliably increase your wealth, health and livelihood by protecting you.
Angela Okinda, the CEO and Chief Executive Officer of ELAK, said her goal is to provide consumers with freedom and easy access to insurance solutions, payment and placement of their coverage, and support and advice during the life of the policy.
< p> “ELAK will also easily provide access to insurance solutions through multiple sales channels. The insurance offer from ELAK will be refreshingly different, innovative and very convenient, “said Ms. Okinda when she received the license from the IRA in Nairobi.
The chairman of the IRA, Abdirahin Haithar, also said when the license was handed over Abdi is optimistic that ELAK would play a key role in the industry, considering its previous business history that the Equity Group has instilled trust in many Kenyans.
“The insurance business relies heavily on trust and Equity has one well-defined story and public support which is key to being successful in the industry, “said Mr. Abdi.
Kenya ranks 4th in Africa in terms of insurance penetration and many investors have chosen the sector is interested.
The insurance industry in Kenya is characterized by a low level of market penetration, currently estimated at 2.4%, due to a number of factors This includes a poor or limited product portfolio, little or no awareness of available insurance products, and a low level of income.
Low returns on life insurance, cumbersome claims settlement procedures, lack of trust among insurance players, negative perception of providers or intermediaries and expensive premiums, among other things, make it difficult for the sector to grow.
However, the insurance industry has seen steady growth over the years, with market premiums currently estimated at around $ 2.35 billion.
But it is mostly from the general corporate category with long-term insurance premiums of $ 1.02 billion, which is 43.4% of the total premiums written.