Insurance authority regrets low uptake in Meru

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Official government statistics have revealed a worrying trend in Meru County, where insurance penetration stands at a mere 1.3 percent.

This despite the existence of a thriving agricultural, tourism and other sectors.
According to Meru Deputy Governor Linda Kiome-Gitonga, insurance uptake in Meru is low, and there is need for public awareness on how insurance can spur their economic development.

Speaking during the opening of a three-day Insurance Open Day program organized by the Insurance Regulatory Authority (IRA), Ms Kiome-Gitonga said there was need for improved uptake of insurance services to spur the local economy.

"It is, however, a matter of concern that Meru County remains one of the counties with low insurance penetration. When some counties record insurance access rates of about 12 percent, Meru County stands at approximately 1.3 percent. This statistic challenges us to intensify awareness and deepen financial inclusion," said the DG.

She noted the fact that Meru Town, the county headquarters, hosts a big number of the recognised insurance companies, and challenged individuals and local businesses to take advantage.

"I am encouraged by increasing confidence that insurance companies are showing in Meru County. Today, we proudly host 21 insurance companies with branches in Meru. This growing presence is a vote of confidence in our county's economic potential, and presents an opportunity for our people to access insurance products, services with greater convenience," she added.

Kalai Musee, the Director of Supervision at IRA, sought to debunk the widespread perception that insurance is a luxury reserved for the wealthy class.

"Insurance policies are not tailored for the rich in society. They are designed for everyone who wishes to protect their hard-earned gains from unprecedented accidents or disasters. Insurance provides the peace of mind and stability needed to pursue further growth," Mr Musee said.

He pointed to the fact that Meru is one of the biggest agricultural counties, and urged farmers and others to embrace insurance.

"Meru county recorded the highest number of registered farmers in Kenya, more than 283,000. That accounts for about 4.4 percent of the total registered farmers in Kenya," Musee said.

He said the role played by the farmers, tourism and other sectors in Meru in the economy.
"These things require insurance," he said, noting that the insurance companies were now offering services to farmers.

"They have started offering agricultural insurance which we need to tap in," he said.
Musee said the authority was conducting insurance open days across the country in a bid to improve consumer awareness, and understanding of insurance matters.

"The importance of insurance is mainly to mitigate risks faced by individuals and businesses to enable them transact business without worry of the consequences of risks."