NIC Bank today hosted a marine insurance seminar to sensitize its customers and the broader public about the opportunities presented by the recently enacted Section 20 of the Insurance Act.
The seminar, which was graced by NIC customers and key stakeholders in the industry, including IRA, Old Mutual UAP Insurance, Kentrade, Mitchell Cotts and Oceanic Marine Surveyors was aimed at demystifying the Act.
Section 20 of the Insurance Act came into full effect on January 1 2017, compelling importers to purchase marine cargo insurance exclusively from local insurance companies.
Speaking at the event, NIC Bank Executive Director, Alan Dodd, noted that the bank’s Bancassurance subsidiary, NIC Insurance Agents, had collaborated with leading underwriters in the insurance industry to provide affordable Marine Insurance packages to its customers.
“We cover risks associated with importation of goods such as fire & explosion, theft & robbery, vehicle collision, overturning & accidents, water damage, war related perils, road/rail risks as well as strikes, terrorism & political violence,” said Mr. Dodd.
Before the new provision in the Insurance Act came into effect, about 90 per cent of cargo import insurance was being handled by foreign firms. The Act has now secured this market for local players, a move that has been warmly received by local underwriters.
Most customers, however, are yet to fully understand what the new Act means for them, especially those importers that will now have to switch from foreign underwriters to local players.
“Today’s seminar was aimed at unpacking this Act for our customers,” noted Mr. Dodd. “Sensitization is a key part of empowering our customers to make the right decisions,” he added.
Trade volumes in Kenya continue to grow on the back of heightened demand for consumer goods from the middle class and the growing attractiveness of Kenya as an investment hub. The value of Kenya’s imports are expected to rise from Sh1.57 trillion in 2015 to between Sh2 trillion and 2.2 trillion in 2020.
“The projected surge in import volumes in coming years underscores opportunity in marine insurance for local underwriters. We therefore need to ensure that our customers are well apprised and get the best value through our convenient Bancassurance platforms,” concluded Dodd.