MOTOR INSURANCE POOL REJECTED IN KENYA

The Association of Kenya Insurers (AKI) has rejected Government plans to reintroduce a motor vehicle insurance pool. AKI executive director Tom Gichuhi said that the creation of a pool would not solve the industry’s problems. He said that the government should deal with the factors that cause problems with motor insurance, such as the high level of road accidents. “Creating a motor pool would only distribute losses associated with the class of business and not address the causes”. Attempts by the government to construct a motor insurance pool in the mid-1990s failed through a torrent of fake claims and a lack of structured payments. AKI noted that five companies relied on the motor sector, but that distributing the business among 40 companies “would be equivalent to signing a death warrant for all of them”.