Equity Life Assurance Kenya Triples Market Share to Become Fourth-Largest Underwriter in Kenya

Equity Group’s Life insurance subsidiary, Equity Life Assurance Kenya, has made significant strides in the Kenyan insurance market, tripling its market share in just its second year of operation. According to the latest data from the Insurance Regulatory Authority (IRA), Equity Life Assurance Kenya closed the year ended December 2023 with a market share of 8.7 percent, making it the fourth-largest long-term underwriter in the country.

This impressive growth is evident when compared to the previous year, where Equity Life’s market share stood at 2.97 percent, ranking it 11th out of 24 long-term insurers in Kenya. The jump in market share has propelled Equity Life ahead of Kenindia Life, which now holds the fifth position, while the top three positions remain unchanged. Britam Life Assurance leads the pack with a market share of 21.5 percent, followed by ICEA Lion Life Assurance at 16.2 percent, and Jubilee Insurance Company at 10.2 percent.

Equity Life’s success can be attributed to its focus on deposit administration business, which saw its gross written premium grow 3.5 times to reach Sh14.79 billion in 2023. Deposit administration involves administering pension plans, and Equity Life’s offering in this area attracted Sh12.02 billion, surpassing other insurers in the market. Additionally, Equity Life also offers credit Life insurance, insuring against the risk of customers defaulting on loans due to death or injury, where it remains second to CIC Life with a premium of Sh2.3 billion.

Equity Group’s foray into the insurance market in 2022 has been met with success, as the company aims to provide affordable, innovative, and accessible insurance products in a market where Life insurance penetration is low. The long-term insurance business in Kenya encompasses various classes, including deposit administration, personal pension, life assurance, group life, group credit, Annuities, and investments, with a total gross premium of Sh170.02 billion in 2023.

With the increasing presence of commercial banks in the insurance market through greenfield licenses, acquisitions, and bancassurance, the landscape of the industry is evolving. NCBA Group’s move to fully acquire AIG Kenya Insurance highlights the trend of banks positioning themselves to capture a share of the insurance revenues in a market where penetration remains below three percent.

Equity Group’s success in the insurance sector showcases the potential for growth and innovation in the Kenyan insurance market. As the company continues to expand its offerings and market presence, it is poised to further solidify its position as a key player in the industry.