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