July 18, 2024

Equity Life Assurance Claims Fourth Spot Among Kenya’s Top Life Insurers

Equity Life Assurance Claims Fourth Spot Among Kenya's Top Life Insurers

Equity Life Assurance (ELAK) has made significant strides in the Kenyan insurance sector, securing the coveted fourth position among the country’s leading life insurers with an 8.7 % market share. This impressive feat comes on the heels of a remarkable year in 2023, marked by substantial growth in both gross written premium and market share.

A key driver of ELAK’s success has been its focus on the deposit administration business segment. This segment witnessed a phenomenal 3.5-fold increase in gross written premium in 2023, surging from Sh4.2 billion in 2022 to a staggering Sh14.8 billion.

This exponential growth underscores the company’s effectiveness in penetrating a previously underserved market and its dedication to making life insurance accessible to a wider Kenyan audience.

ELAK’s meteoric rise can be attributed to its commitment to providing Kenyans with affordable, accessible, innovative, and inclusive insurance solutions.

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Launched in January 2022, the company swiftly carved a niche for itself by offering a diverse range of life insurance products, savings plans, and health and wealth protection products. This comprehensive portfolio caters to the varied needs of Kenyans, making ELAK a one-stop shop for all their life insurance requirements.

ELAK’s performance within its first year of operation was nothing short of exceptional. In just nine months, the company issued a remarkable 4.1 million policies and underwrote premiums valued at Sh3.99 billion. Moreover, ELAK achieved profitability during this period, demonstrating its financial stability and sustainable business model.

Equity Life Assurance offers a comprehensive suite of insurance products, including general non-motor insurance for risks like fire and burglary, agriculture insurance for livestock and crops. Additionally, they offer credit life assurance to safeguard loan repayments, group life and disability insurance for cancer treatment support, and Equihealth, an affordable medical cover for groups.

Equity Life Assurance acknowledges the prevailing perception among many Kenyans that views insurance as an obligation rather than a valuable tool. Statistics from the Insurance Regulatory Authority (IRA) indicate a 20% rise in life insurance uptake in 2022. However, this growth is still insufficient to achieve deeper market penetration.

To bridge this gap, ELAK actively promotes life insurance as a financial safety net. Life insurance essentially functions as a contract between the policyholder and the insurance company. It safeguards your family and dependents financially in the event of illness, disability, or death.

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There are two main categories of life insurance policies: protection policies that pay out a benefit upon the occurrence of a specific insured event, and investment-oriented policies that focus on growing the invested capital.

Despite the skepticism surrounding life insurance, it is steadily becoming an essential tool for many Kenyan households. The negative perception towards life insurance is a significant barrier to its wider adoption. Traditionally, discussing or planning for life after death has been considered taboo in many Kenyan communities. This cultural aversion has fostered a sense of skepticism among Kenyans towards purchasing life insurance.

Additionally, isolated incidents of family members being targeted for insurance payouts have further fueled this mistrust.

However, life insurance plans offer a safety net by enabling policyholders to make regular contributions over a predetermined period. In the event of a breadwinner’s illness or disability, the insurance payout provides much-needed financial support for the family. More tragically, if the policyholder passes away, their dependents are financially protected through the designated beneficiary clause.

Beyond safeguarding against illness and death, life insurance also functions as a tool for saving and wealth planning, empowering individuals to build a secure future for themselves and their loved ones.