Marine Cargo Insurance Premium hits 600 million in Q3 2017
Data collected by AKI at the end of September 2017 shows that Marine Cargo Insurance premiums recorded a 10.6 percent growth to reach Ksh661million up from Ksh591million recorded at the end of June 2017.
Compared to the period ending September 2016, the premiums have grown by 69.4 per cent. The gross written premium between January to September 2017 was recorded at Ksh1.8billion. The chart below illustrates the growth over the two years.
To fully implement Section 20 of the Insurance Act, the Statute Law (Miscellaneous Amendments) Act, 2017 amended Section 20 (4) of the Insurance Act to increase penalties from Ksh10,000 and/or imprisonment up to one year to Ksh5million and/or imprisonment of up to five years for any insured who places Kenyan business with an insurer not registered under the Act. Further, the Marine Insurance Act Cap. 390 was amended to make it compulsory to insure marine cargo imports. This will be operational from 1st January 2018.
Engagement between KRA, IRA, KenTrade and AKI are ongoing to ensure that the automation of marine cargo insurance is completed as soon as possible to make the purchase of marine cargo insurance by importers easy and convenient.