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 underserved market and contribute towards the vision of Equity Group to transform lives and expand opportunities for wealth creation.
Dr. James Mwangi, Equity Group CEO and Managing Director stated that the ELAK licence comes at a very critical time when the economy is recovering from the impact of the COVID-19 pandemic. He further observed that as a company, their inspiration is to offer insurance to all categories of consumers and make insurance accessible, affordable and inclusive in line with their purpose of transforming lives, giving dignity and expanding opportunities for wealth creation adding that the insurance business of ELAK will be based on simplicity, openness, transparency and trust.
On his part, Commissioner of Insurance, Insurance Regulatory Authority Godfrey Kiptum expressed his delight to see Equity Group adapt to the changing demands of the market and responding to the needs and aspirations of the customers. Observing that 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, which 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.
COVID-19 has been the greatest set back to many households in their pursuit for economic independence. Equity Life (ELAK) is pledging to invest heavily on consumer education to equip Kenyans with knowledge to make the right decisions regarding insurance for themselves and their businesses and to embrace insurance as a key component to reliably grow their wealth, health, and livelihoods by protecting it.
Dr. Mwangi further added that ELAK will optimize on Equity Group’s serial innovation culture to launch inventive and substantial solutions that meet the needs of Kenyans by co-creating products with Kenyans so that its offerings will be relevant and applicable to their daily lives. Further, Equity Group will ensure that the insurance solutions are easily accessible using technology on, thus giving Kenyans the freedom to access, pay and receive the insurance solution of their choice.