Building trust among insureds will be essential for success in the future, Kenyan brokers have been told.
Speaking at the Association of Insurance Brokers Kenya (AIBK) annual conference in Mombasa, the industry regulator Godfrey Kiptum, CEO of the Insurance Regulatory Authority, pointed out that, too frequently, insurance is sold without a sufficient explanation of what is being sold.
“You need to say the premium will be for A, B, C and D but not for this,” he urged the 750 delegates. Instead of which he suggested brokers had the “best job in the world, selling a policy and collecting the commission, while the insurer collects the premium but then buys the liability.”
His words were echoed by Geoffrey Odundo, group managing director/CEO Nation Media Group, who said that it was hard for consumers to trust the insurance sector when it seemed more focused on getting the sale than in ensuring the protection was fit for purpose.
Geoffrey Odundo, CEO of Nation Media Group
He said there is a huge education piece to be done by the insurance sector, because consumers simply did not appreciate the protection that insurance has to offer. Odundo explained how he, himself, buys the insurance that he has to, like car insurance, but only thinks about the renewal when it comes around.
Suggesting three things that insurers and brokers could do to help themselves, Odundo said “There is a need to change the mindset. There is no after-sales service from an agent or a broker. You only see these people when it comes round to renewal and there is a gap in service that insurers and brokers could fill.
“Secondly, could insurance products be more innovative? Perhaps a life insurance policy which gives cash back or a general insurance product that I can buy when I need it. Basically, it is about making products more relevant,” he said.
Finally, he suggested that insurers should spend more time explaining what insurance cover can offer. Using technology would be a good place to start, he said, particularly when it comes to selling insurance to Gen Zs who are the least likely group to read and understand complicated insurance policy wordings.
Kiptum urged delegates “to pull up their socks” and shake themselves up in the way they sell insurance. He also encouraged them to adopt new technologies to help them reach new consumers, asking “why don’t you use more technology? It costs very little and can support your business.”
Godfrey Kiptum, Kenya CEO of Insurance Regulatory Authority
The regulator also referenced the Insurance Professionals Act and said the Authority would be working with the Ministry of Finance to review the recently passed Act. He said they would be consulting with industry shortly.
The Act was mentioned by a number of speakers with AIBK national chairman John Lagat congratulating on members becoming “professionals”, courtesy of the Act. He urged delegates to live up to that designation, which he said was a real milestone moment for the sector.
His words were echoed by Peter Kagia, chairperson of the Insurance Institute of Kenya (IIK), who explained that the Institute has been tasked with driving professionalism through the sector, including continuing professional development which will become key in allowing insurers and brokers to achieve their licences to operate under the new Act.
Kagia said the new Act provided an opportunity for brokers and insurers to demonstrate their expertise. He also suggested this is not just a Kenyan initiative but an opportunity for the whole region to showcase its professionalism.
Celebrating 20 years of AIBK, Lagat said insurance gives business confidence to invest and operate and it provides security to families who want to protect their lives. However, the fulfilment of the promise comes at the moment of a claim, at which point all stakeholders in the insurance chain have a responsibility to deliver on that promise.
For brokers and intermediaries, he said, there is a responsibility to sell the right promise and to demonstrate their valuable expertise and quality of service. Lagat said broker-driven business accounts for around 35% of gross written premium and that represented a real opportunity for brokers to improve insurance literacy and develop solutions for consumers that they really need.
John Lagat, Chairman of the Association of insurance brokers Kenya
Ultimately, he said, the sector’s success and sustainability will “depend on how we handle customers and how we handle trust, changing customer expectations and handling emerging risks”.
Lagat said brokers must keep up with changing risks, including such things as climate change, cyber risks and health risks. Future leaders will be found among those willing to learn while remaining anchored in professional excellence, he said.
The rallying call for Kenya’s brokers is to develop trust, he said, and ensure they remain relevant as myriad changes impact demand and the relevance of insurance going forward. Lagat believes the AIBK’s 2026-2030 strategy provides a clear road map for future success.
With the theme of “Perfect Vision: Building Trust, Inspiring Courage and Defining the Next Chapter”, Lagat said delegates were invited “to reflect not only on how far we have come, but also on the future we want to build. It challenges us to look beyond established practices, confront emerging risks and identify opportunities to make insurance more relevant, accessible and valuable to the people and businesses we serve.”
He concluded “Equally important is our commitment to collaboration. The challenges and opportunities before us cannot be addressed by any one institution in isolation.
“Stronger partnerships among brokers, insurers, reinsurers, regulators, policymakers and other stakeholders will be essential to expanding access to appropriate insurance solutions and building a more resilient industry.”
Finally, he said, it was not enough to discuss this at conferences but take nothing away. It must be matched by action, Lagat stressed, urging brokers to take home the messages from the conference and to start changing their processes and their cultures.
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