Equity Life Assurance (ELAK) which is fully owned by Equity Group Insurance Holdings has received a life insurance license to operate as an insurance provider in Kenya. The license will enable ELAK to provide life insurance solutions to an underserved market and contribute towards the vision of Equity Group to transform lives and expand opportunities for wealth creation.
Reports have shown that the insurance industry in Kenya is characterized by low penetration levels, currently estimated at 2.4%. This has been attributed to a number of factors. These include limited product portfolio, low or no awareness on available insurance products, low-income levels among the key consuming public, among others.
Equity Life (ELAK) has committed to invest heavily on consumer education to equip Kenyans with knowledge to make the right decisions regarding insurance for themselves and their businesses. The company will also help consumers to embrace insurance as a key component to reliably grow their wealth, health, and livelihoods by protecting it.
While handing over the ELAK license, Commissioner of Insurance, Insurance Regulatory Authority Godfrey Kiptum said, ” As the regulator, we are delighted to see Equity Group adapt to the changing demands of the market and responding to the needs and aspirations of the customers. The insurance business in Kenya is still heavily driven by the general business class and with the entry of Equity Life Assurance (Kenya) Limited into the sector, this is likely to enhance the value and distribution of life insurance in the country.”
On his part, Dr. James Mwangi, Equity Group CEO and Managing Director said, “The ELAK licence comes at a very critical time when the economy is recovering from the impact of the COVID-19 pandemic. Our inspiration is to offer insurance to all categories of consumers and make insurance accessible, affordable and inclusive in line with our purpose of transforming lives, giving dignity and expanding opportunities for wealth creation. We realised that the greatest threat to wealth creation is when disaster strikes, and the family and entities have no fall-back plan except removing capital from their businesses to meet such expenses.”