In a landmark celebration of excellence and diversity, the Association of Kenya Insurance (AKI) 2024 Awards, held recently in Nairobi, underscored the dynamic evolution of Kenya’s insurance sector—a business now valued at Sh276 billion. With women emerging as the frontrunners in insurance sales and leadership, the awards not only recognized top-performing companies like APA Insurance, Jubilee Insurance, CIC Group, Old Mutual, and Britam but also celebrated the transformative role of female agents in driving growth, innovation, and financial inclusion in the industry.

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A Night of Accolades: The AKI 2024 Awards

At the prestigious 23rd edition of the AKI Awards, several firms were feted for their stellar performance amid a competitive landscape marked by rapid change. The event, held at a prominent Nairobi hotel, coincided with International Women’s Day celebrations, highlighting the critical role of gender inclusivity in the insurance sector.

APA Insurance emerged as the standout winner by clinching the Company of the Year – General Insurance award for the second consecutive year, a testament to its market leadership and customer-centric approach. The ceremony also saw Jubilee Insurance, CIC Group, Old Mutual, and Britam being recognized in various categories, with CIC being named the most improved company and Jubilee recording the second-highest growth in policies sold.

In a sector where innovation and service excellence are paramount, the awards served as a platform to acknowledge both institutional achievements and individual excellence. Notably, top-performing agents such as Charlene Kimara, who was crowned the medical insurance agent of the year, and Margaret Mwaura, who earned accolades in the business mix award (new business) category, were celebrated for their significant contributions to the companies’ growth trajectories.

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The Rising Influence of Women in Insurance

A highlight of the evening was the remarkable representation of women in the industry. AKI Chairman Nixon Shigoli revealed that out of 1,083 qualifying insurance sales agents in the 2024 competition, an impressive 66 percent were women, compared to 34 percent men. This striking statistic not only reflects the increased participation of women in the field but also signals a broader shift towards gender inclusivity in a traditionally male-dominated sector.

The surge in female participation is part of a global trend where women are increasingly assuming leadership roles in financial services. In Kenya, this shift has been fueled by targeted initiatives aimed at empowering women through training, mentorship, and access to digital tools. The success of agents like Charlene Kimara and Margaret Mwaura underscores how female professionals are not only excelling in sales but are also becoming key drivers of innovation and customer satisfaction within their organizations.

This gender dynamic is critical for the sector’s growth. Women agents often bring a unique set of skills that resonate well with clients, particularly in the area of personal and family risk management. Their empathetic approach, combined with robust product knowledge, has enabled many insurance companies to expand their reach into underserved markets, thereby increasing overall penetration in a country where, despite the impressive market size, insurance penetration remains below three percent.

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Transforming the Insurance Landscape Through Digital Innovation

The AKI Awards 2024 came at a time when the Kenyan insurance industry is undergoing a digital transformation aimed at broadening market access and enhancing customer experience. Traditionally, insurance in Kenya has relied heavily on agent-based distribution. According to records from the Insurance Regulatory Authority (IRA), the country boasts around 11,400 agents and 176 brokers. While this network has been effective, it is increasingly being complemented by digital platforms and micro-insurance products designed to reach the largely informal market.

Embracing Technology to Expand Access

With the industry valued at Sh276 billion—a significant jump from Sh142 billion in 2018—the need to leverage technology has never been more pressing. Companies are increasingly banking on digital transformation to overcome longstanding challenges such as low penetration rates and limited product accessibility. By integrating technology, insurers can streamline policy issuance, claims processing, and customer engagement. Mobile apps, online portals, and digital payment systems are rapidly becoming part of the new insurance ecosystem, making it easier for clients to access products and for agents to serve them efficiently.

For instance, firms like Britam and Jubilee are investing heavily in digital channels to complement traditional distribution. These channels not only broaden the reach of insurance products but also allow for innovative offerings such as pay-as-you-go models and on-demand coverage, which are particularly appealing to younger, tech-savvy consumers. The digital shift is paving the way for increased financial inclusion—a critical objective in a market where insurance penetration is still catching up with global standards.

Micro-Insurance: A Gateway to the Informal Sector

Another significant trend in the industry is the rise of micro-insurance products. Targeted primarily at low-income and informal sector populations, these products are tailored to meet the needs of clients who have traditionally been excluded from conventional insurance schemes. Micro-insurance offers affordable premiums and simplified claims processes, which help bridge the gap between financial services and the everyday needs of ordinary Kenyans.

AKI noted in December 2024 that enhancing product accessibility is one of the critical areas for industry players. The integration of technology with micro-insurance products has the potential to boost penetration rates significantly by making insurance more relevant and accessible to a broader segment of the population. This strategy not only fosters economic resilience at the grassroots level but also contributes to the overall growth of the insurance sector in Kenya.

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The Economic Impact of Kenya’s Booming Insurance Sector

The Kenyan insurance industry is more than just a business—it is a vital component of the country’s economic engine. According to the Kenya National Bureau of Statistics (KNBS), the financial and insurance services sub-sector contributes approximately 7.6 percent to the nation’s gross domestic product (GDP). This contribution is indicative of the sector’s broader role in stabilizing the economy and facilitating growth.

Robust Growth Amid Economic Challenges

Recent figures highlight the sector’s robust growth. The insurance sub-sector grew by 15.8 percent in 2022, following a more rapid growth rate of 26.9 percent in 2021. Additionally, net premiums rose from Sh115.1 billion in 2021 to Sh128.8 billion in 2022, underscoring a steady upward trajectory despite economic headwinds. These statistics, drawn from the KNBS 2023 Economic Survey Report, reflect the resilience and potential of the industry to drive sustainable development.

The remarkable growth of the industry is a double-edged sword. While the increase in business volume is encouraging, the sector continues to grapple with low penetration levels. With less than three percent of the Kenyan population currently insured, there is considerable untapped potential. The challenge lies in converting the burgeoning market value of Sh276 billion into widespread financial security for all Kenyans. Addressing this issue requires a multifaceted approach that involves not only technological innovation and product diversification but also greater financial literacy and enhanced regulatory support.

Job Creation and Skill Development

Another significant benefit of the insurance sector is its contribution to employment and skill development. In 2024, there were over 11,550 licensed insurance agents in Kenya—a figure that highlights the sector’s capacity to generate jobs and provide career opportunities, especially for the youth. IRA Commissioner Godfrey Kiptum noted that the insurance profession holds immense potential for young people, offering them a pathway to employment while simultaneously increasing insurance penetration across the country.

The emphasis on agent performance and recognition at events like the AKI Awards plays a crucial role in motivating professionals to strive for excellence. This, in turn, drives the industry’s overall performance and contributes to a more skilled and dynamic workforce. With continuous training and mentorship, insurance agents are better equipped to educate the public about the benefits of insurance, thereby fostering a more inclusive and resilient financial ecosystem.

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Overcoming Challenges and Seizing Opportunities

Despite the impressive growth and promising trends, the Kenyan insurance market faces several challenges that need to be addressed for sustainable expansion.

Low Penetration and Limited Access

One of the most significant challenges is the persistently low penetration rate, which remains below three percent. This low level of insurance uptake is attributed to several factors, including a lack of awareness about insurance products, cultural misconceptions, and affordability issues. For many Kenyans, particularly those in rural and informal settings, the concept of insurance remains abstract, and the perceived benefits are often outweighed by the cost.

To address these issues, industry players are focusing on enhancing product accessibility and developing innovative distribution channels. The heavy reliance on agent-based distribution, while effective in urban areas, needs to be supplemented with digital solutions and micro-insurance offerings that can reach underserved communities. By lowering entry barriers and tailoring products to meet local needs, insurers can significantly boost penetration and ensure that a broader segment of the population is covered.

Regulatory and Operational Hurdles

The insurance industry in Kenya is also navigating a complex regulatory environment that can sometimes stifle innovation. While regulatory oversight is essential for ensuring consumer protection and market stability, overly stringent rules may impede the swift rollout of new products and services. Industry stakeholders have called for regulatory reforms that balance the need for oversight with the flexibility required for innovation.

Moreover, the operational challenges associated with scaling up digital platforms and integrating micro-insurance products into existing systems cannot be underestimated. Insurers must invest in robust IT infrastructure, data analytics, and cybersecurity measures to support their digital transformation efforts. These investments are crucial for building trust among consumers, who are increasingly wary of digital transactions due to concerns over data privacy and fraud.

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Strategic Insights from Industry Leaders

The AKI Awards 2024 provided a valuable platform for industry leaders to share insights and chart a path forward for the sector. Group Chief Executive of Apollo Investments Ltd, Ashok Shah, emphasized that the awards are a testament to the hard work and dedication of the entire team and valued agents. He reiterated APA Insurance’s commitment to delivering top-tier insurance solutions while continuously evolving to meet customers’ changing needs. “At APA Insurance, we are committed to delivering top-tier insurance solutions while continuously evolving to meet our customers’ changing needs. This recognition strengthens our resolve to remain at the forefront of the industry and continue our journey of innovation and excellence,” Shah stated.

IRA Commissioner Godfrey Kiptum also highlighted the immense potential of the insurance sector as a driver for job creation and economic growth. His remarks underscored the importance of harnessing the talent pool—especially among the youth—to foster a more vibrant and inclusive financial services landscape.

AKI Chairman Nixon Shigoli’s emphasis on the significant presence of women in the industry further reinforces the transformative potential of gender diversity. With women making up 66 percent of qualifying insurance agents in the 2024 competition, the sector is poised to benefit from a broader range of perspectives and approaches that can drive innovation and improve customer engagement.

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Future Prospects: A Dynamic and Inclusive Industry

Looking ahead, the Kenyan insurance industry is well-positioned to capitalize on emerging trends and overcome existing challenges. The convergence of digital innovation, micro-insurance, and a more inclusive workforce is creating a dynamic environment ripe with opportunities.

Expanding Digital Footprint

The continued expansion of digital channels is expected to revolutionize the way insurance products are distributed and consumed. As mobile penetration and internet connectivity improve across Kenya, more consumers will have access to online platforms that offer streamlined, user-friendly insurance services. This digital shift is likely to boost overall penetration rates, as customers become more comfortable with the convenience and security of digital transactions.

Harnessing the Power of Micro-Insurance

Micro-insurance will play a pivotal role in broadening the insurance net to include marginalized populations. By offering affordable and flexible products, insurers can address the unique needs of low-income households and informal sector workers. This approach not only enhances financial security but also contributes to social stability by mitigating the economic shocks that many families face.

Empowering Women for Broader Impact

The remarkable representation of women in the insurance sector is a harbinger of future growth. As female agents continue to break new ground in sales and leadership, their success will inspire more women to pursue careers in the industry. This empowerment, coupled with targeted training programs and mentorship initiatives, will create a virtuous cycle of inclusion and innovation. The rising influence of women is not just a statistic—it is a strategic asset that can drive more empathetic and customer-focused service delivery.

Regulatory Reforms and Market Expansion

Industry stakeholders are increasingly calling for regulatory reforms that facilitate innovation while safeguarding consumer interests. A more enabling regulatory framework will allow insurers to experiment with new products and distribution models, thereby accelerating market expansion. By working closely with regulators, industry players can create an environment that supports sustainable growth and ensures that the benefits of insurance reach every corner of the country.

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Conclusion: Pioneering a New Chapter in Kenya’s Insurance Industry

The AKI Awards 2024 have not only celebrated the successes of today but have also set the stage for a transformative future in Kenya’s insurance landscape. With the market now valued at Sh276 billion and women leading the charge in sales and innovation, the industry is experiencing a renaissance that promises to reshape financial services across the nation.

As leading firms like APA Insurance, Jubilee Insurance, CIC Group, Old Mutual, and Britam continue to push the boundaries of excellence, the focus on digital transformation, micro-insurance, and regulatory innovation will be critical to addressing longstanding challenges such as low penetration and limited access. The impressive growth in net premiums, coupled with the significant contribution of the financial and insurance sub-sector to Kenya’s GDP, underscores the vital role that this industry plays in the nation’s economic development.

Moreover, the increasing number of licensed agents—now exceeding 11,550—highlights the sector’s capacity to create jobs and drive financial inclusion. With women representing 66 percent of these agents, the industry is not only becoming more diverse but also more resilient and innovative. Their leadership is catalyzing a shift in how insurance is delivered, making it more accessible, empathetic, and responsive to the needs of everyday Kenyans.

In an era where technological innovation is reshaping traditional business models, Kenya’s insurance industry stands at the cusp of a major transformation. By embracing digital platforms and micro-insurance products, insurers are opening up new avenues for growth and ensuring that even the most underserved populations can benefit from financial protection. This evolution is critical for fostering a more inclusive economy—one where risk is managed more effectively and opportunities for economic advancement are available to all.

As the industry continues to evolve, the lessons from the AKI Awards 2024 will serve as a guiding light. The recognition of excellence, commitment to customer-centric solutions, and the celebration of diversity all point to a future where the insurance sector is not only a key economic driver but also a cornerstone of social progress in Kenya.

In summary, the race for a share of Kenya’s Sh276 billion insurance business is being led by dynamic, innovative, and diverse professionals who are redefining the industry. With a strong foundation built on digital innovation, regulatory collaboration, and the empowering presence of women, the Kenyan insurance sector is poised for a new chapter of sustained growth and transformative impact. As stakeholders continue to invest in talent, technology, and innovative products, the industry will undoubtedly play a crucial role in shaping Kenya’s economic future and ensuring that financial security becomes a reality for all.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

10th March, 2025