A life insurance license has been issued today to Equity Life Assurance (Kenya) Ltd (‘ELAK’) which is fully owned by Equity Group Insurance Holdings Limited (EGIHL), a subsidiary of Equity Group. The license will enable ELAK to provide life insurance solutions to an under-served market and contribute towards the vision of Equity Group to transform lives and expand opportunities for wealth creation.
Speaking while receiving the license from Commissioner of Insurance, Insurance Regulatory Authority Godfrey Kiptum at the IRA headquarters, Ms. Angela Okinda, the Managing Director and Principal Officer of ELAK said, “ELAK will contribute to the trusted Equity brand by providing inclusive, affordable, innovative and accessible insurance products to a majority of Kenyans who are not utilizing insurance solutions to secure much needed protection of their lives, health and wealth, or secure their financial futures through savings solutions.”
Dr. James Mwangi, Equity Group CEO and Managing Director said, “The ELAK licence comes at a very critical time when the economy is recovering from the impact of the COVID-19 pandemic. Our inspiration is to offer insurance to all categories of consumers and make insurance accessible, affordable and inclusive in line with our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation.
We realized that the greatest threat to wealth creation is when disaster strikes, and the family and entities have no fall-back plan except removing capital from their businesses to meet such expenses. The insurance business of ELAK will be based on simplicity, openness, transparency and trust.”Dr. James Mwangi, Equity Group CEO
While handing over the ELAK license, Commissioner of Insurance, Insurance Regulatory Authority Godfrey Kiptum said, ”As the regulator, we are delighted to see Equity Group adapt to the changing demands of the market and responding to the needs and aspirations of the customers.”
The insurance business in Kenya is still heavily driven by the general business class and with the entry of Equity Life Assurance (Kenya) Limited into the sector, this is likely to enhance the value and distribution of life insurance in the country.
The insurance industry in Kenya is characterized by low penetration levels, currently estimated at 2.4% This has been attributed to a number of factors including poor or limited product portfolio, low or no awareness on available insurance products, low-income levels among the key consuming public, perceived low rate of returns for life insurance policies, cumbersome claim settlement procedures, lack of trust of insurance players, negative perception of providers/intermediaries and expensive premiums among others.