Challenges facing insurance industry in kenya insurance industry in kenya is faced by several challenges that make their operation in the kenyan market not so easy challenges facing public service vehicles underwriting in kenya challenges facing psv insurance in kenya share to:.
The probox is a common vehicle in kenya, and is mostly used as a public service vehicle (psv) and by business people however, the private motors business class has come with serious challenges for insurers due to the high number of fraudulent claims kenya orient managing director muema ndindi. The target population was all the licensed non-life insurance companies in kenya from year 2000 to 2011 based on the study there was a weak positive relationship between the underwriting profit and investment innovation on insurance company premium growth (karanja, 2011), challenges in management of.
Insurance brokers have warned of a looming extinction of their business as underwriters increasingly opt for direct contact with policy buyers the association of insurance brokers of kenya said direct procurement, especially by public entities, has emerged as one of the trends that threaten their survival.
Underwriting of this class of business 17 these companies faced various challenges resulting in the collapse of eight of them since 1992 18 since then, most of the insurance companies have shied away from insurance of psv's as they consider it a bad risk currently out of the 44 licensed insurance. According to the petitioner, various courts are dealing with the issues of compensation payable differently the rampant insolvency of many insurance companies that were previously involved in public service vehicles (psv) underwriting and the reluctance of most of the insurance industry to insure psvs. There are currently only two matatu insurance providers/underwriters in the market that is invesco and directline previously, amaco insurance offered psv car insurance for matatus but pulled out of the segment due to heavy losses in the business the providers of this class in kenya is quite limited as a.
A number of insurance companies offer insurance cover to public service vehicles (hereinafter referred to as 'psv's'), to ensure compliance by motor vehicle owners with the provisions of cap 405 the companies have however, faced enormous challenges in the underwriting of psv insurance business a.
That may all seem daunting for the industry, but it is perhaps easier to cope with than the other set of challenges, which fall broadly under the heading of “ technology” while insurers are used to dealing with underwriting and interest rates, many of the latest technological developments have been tougher.