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Increasing numbers of local and international companies in Kenya are buying insurance against political risks and terrorism, with insurance sales rising over 50% in 2012, AllAfrica reported.
Africa Trade Insurance Agency marketing officer Souvik Banerjea said that there have been threats of retaliations ever since the Kenyan military invaded Somalia, with shopping malls, stores and other businesses involving crowds being targeted by the terrorists. Twenty out of 42 Kenyan insurers will form a risk pool to protect themselves from paying huge claims at once. The pool will also launch affordable political risk and terrorism covers. ATI Chief Underwriting Officer Jef Vincent said that apart from the risk of terrorism, the country is also facing political risk as elections approach. Banks are increasingly taking insurance against non-payment risks by their clients as international financial institutions have reduced lending due to elections. Foreign companies importing goods and services to both private companies and government agencies are also seeking insurance against the risk of their clients' business getting interrupted during elections.