Insurance brokers to be accredited under new Act amidst poor industry performance

All insurance brokers will be registered and accredited by the Insurance Institute of Kenya (IIK) following the launch of the Insurance Professional Act 2025.

The said Act has set a strong framework for professional conduct, reinforcing the values that are key to building and sustaining public trust in insurance.

National Assembly Finance National Planning Committee chair Kuria Kimani said that for years, the sector has remained paradoxically robust in potential, yet restrained in performance.

He spoke during the 40th IIK annual conference in Mombasa.

Kimani said that despite Kenya’s advanced financial infrastructure, insurance penetration has hovered around 2.8 per cent of the Gross Domestic Product (GDP), below Africa's 4 per cent.

“The gap is not due to lack of policies, brokers, or capital; it’s a trust deficit. Consumers doubt whether policies will pay, claims will be honoured, and their interests will be served,” he said.

He said the Insurance Professionals Act, 2025, establishes the Insurance Institute of Kenya (IIK) as a statutory body with clear powers to certify and accredit insurance practitioners, set ethical and professional standards, and discipline misconduct in the industry.

“No one will call themselves insurance professionals unless they are qualified, accountable, and bound by a code of conduct. This elevates insurance from a transactional business to a profession like accountancy, law, or medicine — where entry, practice, and growth depend on competence and integrity,” said Kimani.

He said Parliament believes this Act creates a virtuous cycle when consumers trust the professional, uptake rises, premiums grow, capital deepens, and the economy benefits.

Kimani said with this Act, Kenya expects higher penetration, better governance and disclosure, improved local retention of premiums, and increased investor confidence, and also the law strengthens not only professionals but also the national economy.

“We engaged the Insurance Regulatory Authority (IRA), the Association of Kenya Insurers (AKI), and the Institute of Insurance Professionals in crafting a law that is modern, inclusive, and homegrown,” said Kimani.

He said the Virtual Assets Service Providers Bill, 2025, having passed the Third Reading, the era of insurance payments and settlements through virtual assets is here.

The Virtual Assets Service Bill 2025, according to Kimani, not only creates new opportunities for efficiency, traceability, and transparency, but also necessitates stronger governance and compliance. Kenya must not only adopt these innovations but also lead them responsibly.

Commissioner of Insurance and Insurance Regulatory Authority (IRA) Chief Executive Officer Mr Godfrey Kiptum said that the Act empowers the Institute and IPEB, respectively, to regulate, accredit, and advance the professional practice of insurance, ensuring that every practitioner upholds the values of integrity, competence, and accountability.

Kiptum said these key developments have come at a time when Kenya’s insurance industry continues to demonstrate remarkable resilience and growth.

He said that between January and June 2025, the industry recorded an impressive 13.4 per cent growth in gross premiums, rising to sh241.34 billion, compared to sh212.85 billion during the same period in 2024.

Kiptum noted that both life and non-life segments have grown significantly, underscoring the crucial role of insurance in safeguarding households and businesses against unexpected shocks.

“Long-term insurance business premiums amounted to sh110.39 billion, representing 45.7 percent of the total industry premiums. General business premiums reached sh129.88 billion, or 53.8 percent, while microinsurance business contributed sh1.07 billion, accounting for 0.4 percent,” said Kiptum.

The Commissioner said the ability to achieve such growth while settling an increasing number of claims is a testament to the commitment to building a robust, trustworthy, and customer-centric industry, one that continues to thrive even in turbulent times.

Despite challenges arising from the economic aftershocks of COVID-19, inflationary pressures, and political uncertainties, our industry has remained steady.

“We have also strengthened vigilance against fraud, reaffirming our resolve to protect legitimate policyholders and safeguard the integrity of our financial system. As risks evolve from climate-induced disasters to property destruction during riots, the need for greater insurance penetration, innovation, and consumer awareness has never been more urgent,” said Kiptum.

IIK Director Alice Muthoni said the act is a symbol of recognition, an acknowledgement that insurance professionals are central to the strength, credibility, and sustainability of the financial services sector.

Muthoni said for years, members dreamed of a day when their qualifications, ethics, and competence would be enshrined in law.

She said insurance is no longer just about protection; it is about empowerment, creating systems that anticipate risk, build resilience, and drive inclusive growth.

“We are living in an era defined by uncertainty, from climate change and digital disruption to geopolitical shifts. Yet within every challenge lies an opportunity – the opportunity to innovate, to collaborate, and to lead with intelligence and compassion,” said Muhtoni.