Kenyans have been urged to insure their homes to protect against total loss in case of incidents such as the floods that have devastated many families after their homes were marooned by floodwater.
Madison Life Assurance Managing Director Githua Ngaruiya said while affordable, many people tend to discontinue such covers as domestic insurance coverage after the first few years only for tragedy to strike later when least expected.
“As you are aware of what has been happening with the floods, a domestic cover would have helped to recover from the effects. They are very affordable," he said.
"Unfortunately people buy these products and may not see the benefits… five years on and nothing has happened and usually when you cancel that is when something happens."
Mr Ngaruiya spoke Friday during a breakfast meeting with the Association of Insurance Brokers of Kenya (AIBK).
The meeting was also attended by Madison General Insurance Kenya Managing Director Samuel Chege and Anthony Mwangi national chairman of AIBK.
The rains have wreaked havoc across the country, causing deaths and damage to property. The homes of many Kenyans have been destroyed and families will have to start rebuilding from scratch.
Ngaruiya further urged the industry players including the insurance brokers to popularise insurance products beyond the usual offering to include products such as domestic insurance covers.
Insurance uptake in Kenya is low and largely driven by motor vehicles, which is a legal requirement, and health insurance, where beneficiaries are largely employees insured by their respective employers.
Insurance penetration in Kenya stands at about three per cent of the gross domestic product, which is among the lowest in Africa.
This is compared to South Africa, where penetration is 17 per cent of GDP. Among the areas where the industry can look into growing include pensions, which Ngaruiya noted is critical in ensuring that one does not suffer or become a burden in old age.
“Pension is about savings and savings is about ensuring a life without worry upon retirement. It is never too late to start saving but the earlier the better,” he said.