Develop products that positively impact of poor Kenyans, Mudavadi urge insurance industry players
Prime Cabinet Secretary, Musalia Mudavadi has challenged the insurance industry to develop more innovative products that will positively impact on the lives of Kenyans at the bottom of the economic pyramid.
Mudavadi said towards this goal, the government will seek strict enforcements of provisions of local retentions to grow skills and technologies of institutions and mobilize savings for investments.
“As government, we are initiating policies and a conducive environment to help the insurance sector which lags behind to grow, and close the protection gap in building resilience of our communities.” Mudavadi said.
While presiding over the 30th anniversary of PTA Reinsurance Company (ZEP-RE) in Nairobi, the Prime CS said insurance organizations, in collaboration with the regulator, should focus on building a strong and progressive industry with capacity to retain the premiums and invest in the regions.
He lauded the insurance company for investing over US$1.5 billion in Africa, recognizing the fact it has grown its footprint beyond Common Market for Eastern and Southern Africa (COMESA).
Similarly, he said the Zep-Re Academy is an industry thought leader in technology and innovation, a situation, which speaks to the need for excellent home-grown institutions to drive growth in the continent.
He said of great significance is ZEP-RE’s appointment as the implementing agent of Component 1 of the Horn of Africa – DRIVE – on behalf of the region.
“DRIVE has seen de-risking, inclusion and value enhancement of pastoral communities. This is testament to the trust and confidence that stakeholders, including governments of the region, have in the organization’s capabilities.” Mudavadi added.
He said the DRIVE project, which builds resilience of most vulnerable pastoralists through Insurance and savings; connects them to markets and private sector participation, should be a best-case example of Public Private Partnerships (PPP).
“By providing risk management solutions and promoting financial inclusion, ZEP-RE is paving the way for sustainable growth and prosperity.” He noted.
Mudavadi said that other on-going initiatives by the company include innovative and affordable insurance products for small-holder farmers, that allows more lending into the agriculture sector that employs the majority of Kenyans and promotes resilience against climatic shocks.
“Your support for affordable housing is sport-on – Covering mortgage deposit so that our deserving teachers, health workers and informal sector, can access full mortgages and own homes without a deposit. This is true inclusion that also promotes insurance diffusion, which currently stands at a paltry 2-3 per cent.” The Prime CS added.
