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Insurance industry has continued to improve the lives of Kenyans – ZEP-RE

The  insurance industry has played a critical role in the socio-economic development of the country by improving the business operations in country thereby promoting growth.

It  is  one  of  the largest contributors of investments in real property, fixed deposits and the equity market and the society  is no longer burdened by losses suffered in business therefore business owners no longer worry about cash flow losses.

The  Ministry  of  Industry, Trade and Cooperatives Cabinet  Secretary (CS), Peter  Munya in a speech read on his behalf  Principal Secretary (PS)  Chris Kiptoo  on Monday during ZEP-RE’s 28th  Annual General Assembly in Nairobi said that the government recognizes large claim payouts made by PTA Reinsurance Company (ZEP-RE) to the Kenyan society.

“We  note  with  gratitude large claim payouts you have made to the Kenyan society to ensure lives and businesses are  not unduly  interrupted. This include payouts to small scale traders at Gikomba market worth Sh.50,000,000 after  various  fire accidents, the  JKIA  airport  fire claim Sh.2 billion, Westgate terrorism Sh.1.2 billion and payment of victims  of  the Dusit 2 terror attack which is still being processed,” said Munya.

Munya  said  that insurance and reinsurance industry plays a key role towards the achievement of the Big Four Agenda in supporting and implementing its programmes.

“We understand the important role insurance plays in the economic development thus committing to ensure the macro-economic and regulatory environment in Kenya supports insurance and reinsurance business therefore the Big 4 agenda is availing opportunities to this,” he said.

The  CS  also noted that Kenya is the largest shareholder in ZEP-RE as it takes about 22 percent of its regional and local  private companies.

“Kenya  has supported and facilitated the operations of the company allowing ZEP-RE unfettered access to the insurance market and facilitates all its operations in Kenya,” he noted.

He  added  that  ZEP-RE has helped to support and positively transform the country’s local and by large the region’s insurance industry.

Munya  applauded ZER-PA on its good performance and its continued efforts to grow and become a leading reinsurer on the continent adding that the government remains committed to supporting the goals and objectives of ZER-PE.

The  Chairman of ZEP-RE, William  Erio  said that ZEP-RE continues to work towards achieving its goals in line with its  founding mandate.

“The company has been an active proponent of developing a robust insurance industry as part of its greater mandate,” he said.

He  further thanked the Government of Kenya for supporting ZEP-RE since its formation and for their continued support that is of paramount importance in helping the company to carry out its mandate.

Erio  added that ZEP-RE has been able to improve in a number of ways due to the support that it gets.

The  ZEP-RE (PTA Reinsurance Company) recorded a marked growth in written premium in the financial year ending December 31, 2018 of USD178.5million up from USD152.1 million recorded in 2017, representing a 17 per cent  growth.

The Company however experienced a significant rise in claims, a regional phenomenon that saw most of the regional markets make losses at both insurance and reinsurance level. Despite an increase in loss ratio, the Company still realised a profit of USD10 million.

By  Babra  Adhiambo/ Joseph Ng’ang’a

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