GCR rates 21 insurers in the Kenyan insurance industry out of the 67 insurers and reinsurers licensed and regulated by the Insurance Regulatory Authority (“IRA”). The GCR rated sample constitutes 33% of licenced insurers and reinsurers in 2019. Analysed by licences, GCR rated 13 short term insurers out of 38 players and six long term insurers out of the 24 players. Out of the five reinsurers regulated by IRA, GCR rated the two largest risk carriers. Primary insurers in the GCR sample accounted for 48% of aggregated long- and short-term gross written premiums in 2019, using data from IRA.
Industry-wide solvency and liquidity may remain inhibited by exposure to outstanding receivables, making it more difficult for market participants to meet the prescribed capital requirement of 200%. In this respect, we expect solvency metrics for most insurers to remain below 200%, albeit largely stable due to offsetting benefits from low underwriting risk and positive capital growth.