Kenyan insurance agents could soon be out of work or forced to meet strict licensing requirements before selling policies if a proposed law before Parliament is passed.

The Insurance Professionals Bill, 2024 seeks to tighten regulations in the industry by making professional certification mandatory, a move that could see thousands locked out of the business.

The bill, sponsored by Molo MP Kuria Kimani, proposes that only individuals who have undergone formal training, passed industry-standard examinations, and obtained practising certificates will be allowed to operate.

It also aims to legally establish the Insurance Institute of Kenya (IIK) as the central regulatory body, a shift from its current role as a membership-based organisation offering training and certification.

“The main objective of this Bill is to provide a legislative framework for the regulation of professionals in the insurance sector to enhance the standards of service in the sector, promote professionalism and address concerns regarding professional misconduct in the insurance industry,” the bill read.

Read More

  1. Jubilee Health Insurance unveils J-Force to reshape insurance distribution
  2. MPs demand review on 2.75 per cent SHIF deduction amid service gaps
  3. MPs reject proposal to centralise KRA deputy commissioners’ appointments

Beyond licensing, the proposed law seeks to create the Insurance Professionals Examinations Board, tasked with setting and administering exams for individuals seeking professional accreditation.

“The Insurance Professional Examinations Board will be mandated to issue examinations for persons seeking to be qualified as Insurance Professionals,” the bill read in part.

A registration committee is also expected to be formed to oversee licensing, maintain a database of qualified professionals, and take disciplinary action against those who breach regulations.

Those found guilty of misconduct or failing to meet the required standards could have their licenses revoked.

Proponents of the bill argue that the changes will enhance professionalism, improve consumer protection, and reduce fraud in the insurance sector.

However, concerns have been raised that the new requirements could render many insurance agents jobless, especially those who have been selling policies without formal qualifications.

If passed, the law could reshape Kenya’s insurance landscape, raising industry standards but also presenting challenges for those who may struggle to meet the new demands.