Insurance
Definition:
Insurance is the act, system or business of providing financial protection for property, life, health etc. against specified contingencies such as death, loss or damages, and involving payment of regular premiums. Payment is made with consideration of a payment proportionate of the risk involved.
Origin of Insurance in Kenya Insurance in Kenya has existed for about 60 years and it was firstly owned by the British insurance industry, usually governed by insurance act and insurance regulatory authority. During colonialism, the British settlers started to invest in economic activities such as farming thus needed protection for their investments from risk thus come up with agencies to protect their investments. Thus these agencies expended to big network to serve their interest. By 1963 during independence they had grown into fully pledged insurance companies. It currently has 44 insurance companies which are regulated by the insurance regulatory authority (IRA), which is a semi-autonomous regulator set up in 2008. IRA is expected to oversee operations of the authority and ensuring that they are consistent with provisions of the insurance act. In short it improves regulation and stability of the industry. Previously, IRA was a department of the ministry of finance, which administered the insurance industry, and it was headed by the commissioner of insurance. The financial Act 2011 boosted the power of authority through amendments to the insurance Act that substituted the word “minister” with “Authority”. The industry operates under an umbrella body, the Association of Kenya Insurers (AKI) which was started or established in 1987. Before then it was known as the Insurance Association of Eastern Africa. Membership is open to any registered insurance company. Its objective is to promote prudent business practice, create awareness among the