Insurance Brokers Urged to Restore Public Trust Through Transparency

The insurance industry has been challenged to restore public confidence through greater transparency, ethical business practices, and improved service delivery. According to John Lagat, National Chairman of the Association of Insurance Brokers of Kenya, trust remains the foundation of the insurance profession. He emphasized that the industry's true value should be measured by the protection it delivers when customers need it most, not by the number of policies sold or premiums collected.

The Association of Insurance Brokers of Kenya's 20th Annual Regional Conference in Mombasa brought together over 700 delegates from across the East African Community to discuss emerging challenges and opportunities. Lagat urged brokers to reposition themselves as trusted advisers, risk management partners, and advocates for policyholders, rather than just intermediaries. He noted that insurance brokers control approximately 35% of Kenya's gross written premiums, describing this as both an opportunity and a challenge for the profession.

Lagat called on brokers to expand insurance penetration among households, Small and Medium-sized Enterprises, farmers, and businesses, while addressing underinsurance and improving public understanding of insurance products. He emphasized the need for innovative solutions that respond to changing customer needs and make insurance more accessible and relevant to a wider section of the population. The profession should aim to develop a better insurance industry, one that is more inclusive, resilient, and responsive to customer needs.

Geoffrey Odundo, Nation Media Group Chief Executive Officer and Group Managing Director, called for fundamental changes in how insurance companies communicate with customers, deliver value, and enforce professional standards. He identified transparency, fair value, professional conduct, and accountability as critical priorities for restoring public confidence and attracting new insurance consumers. Odundo emphasized the need to simplify policy documents and communicate coverage terms in easily understandable language.

Odundo warned that the industry risks losing younger consumers, particularly Gen Z and Alpha, unless it adapts its communication strategies and products to changing consumer preferences. He cited the need for insurers to rethink how they present information and engage prospective customers, as younger generations increasingly prefer short, accessible, and straightforward digital communication. The industry must minimize information overload and make insurance more appealing to younger customers.

Insurance Commissioner and Insurance Regulatory Authority Chief Executive Officer Godfrey Kiptum raised concerns over fraudulent activities involving individuals posing as legitimate insurance brokers and agents. He cited cases of individuals demanding substantial sums of money for insurance performance bonds and emphasized the need for brokers and agents to work closely with the IRA and law enforcement agencies to protect consumers and safeguard the integrity of the insurance market.

The conference, held under the theme "Perfect Vision: Building Trust, Inspiring Courage & Defining the Next Chapter," brings together key players in the financial services sector to discuss industry challenges and opportunities. The gathering aims to promote greater transparency, ethics, and accountability in the insurance sector, ultimately rebuilding public confidence and attracting new customers. Key players are urged to take action to prevent fraudulent activities and ensure professionalism in the industry.

Key points

• Industry stakeholders call for greater transparency and ethics to rebuild public confidence in the insurance sector.
• Insurance brokers urged to expand insurance penetration and improve public understanding of insurance products.
• Insurers must adapt communication strategies to changing consumer preferences, particularly among younger generations.