Insurance is a mechanism through which persons transfer risk(s) to insurance companies at a fee called premium. The insurance companies in return promise to pay for the insured loss should it occur.
There are two forms of insurance namely life (long term) and general (short term). Life insurance contracts for more than one year while general insurance contracts are for one year or less.
The Government institution responsible for the regulation of the insurance industry in Kenya is the Insurance Regulatory Authority (IRA) which in turn issue licenses to insurance companies albeit at certain prerequisites
Below we look at some of the registration requirements of an Insurer are detailed in section 30 and 31 of the Insurance Act Cap 487 of the Laws of Kenya and include the following:
1. An applicant shall fill in the prescribed form by the Insurance Regulatory Authority (IRA) together with appendices. Click here to download the form.
2. Registration fee of Kshs. 150,000 for insurance companies and Kshs. 250,000 for Reinsurers payable to the Insurance Regulatory Authority.
3. Certified copy of the certificate of incorporation of the company.
4. Certified copy of the Articles and Memorandum of Association of the company.
5. A certified copy of the published prospectus, if any.
6. A feasibility study report as outlined under Regulation 7 of the Insurance Regulations.
7. Paid up share capital as prescribed in the Insurance Act: as may apply under: (a). Long term insurance business of Ksh. 150 million (b). General Insurance business Kshs. 300 million (c). Reinsurance business Ksh. 800 million.
8. Details of the shareholders and shareholding structure of the company.
9. Curriculum Vitae of the principal officer
10. A statement of all the classes of business the proposer intends to transact. The classes of business are prescribed in the schedules to the Insurance Act.
11. Specimen proposal and policy forms for all the classes of business the proposer intends to transact.
12. The premium rates the proposer intends to apply under each class of business during the year of registration.
13. A certificate in connection with the long term insurance business by an actuary that the premium rates terms and conditions are sound and workable.
14. A detailed statement of assets and liabilities in Kenya at the date of application.
15. Proposed Reinsurance arrangements.
16. A certificate from Central Bank of Kenya specifying the amounts and details of deposits under section 32 of the Insurance Act (equivalent to 5% of the total admitted assets).
17. The proposed contract documents with Insurance Agents and Brokers.
18. A statement of how the company intends to cover its initial administrative costs.
19. The name of the company should be in order and in line with Section 190.
Don’t hesitate to contact the Insurance Regulatory Authority (IRA) using the avenues below if you have further questions.
Insurance Regulatory Authority (IRA) Contacts
Address: Zep- Re Place Longonot Road – Upper Hill, Nairobi
Email: [email protected]