Life insurance products have for the first time generated more premiums for underwriters than general covers such as motor and medical, indicating a shift in Kenya’s insurance market as customers turn to long-term financial planning products.
Industry data shows gross written premiums from long-term covers grew 23.1 percent to Sh235.39 billion in 2025, surpassing general insurance premiums, which rose at a slower 11.4 percent to Sh227.17 billion.
The crossover marks a turning point for the industry, where general insurance has traditionally dominated due to compulsory covers such as motor and a higher uptake of medical covers.
Life insurance premiums now account for 50.7 percent of the total Sh464.72 billion market, pointing to the growing weight of long-term savings and protection products. Many insurers have been launching and promoting such products.
The picture was different over a decade ago, with general covers dominating in terms of the value of premiums.
In 2013, life business made up just 33.8 percent of industry premiums, with general insurance commanding more than two-thirds (66.18 percent) of the market.
The shift reflects changing consumer behaviour and insurers’ strategy. Kenyan households are increasingly taking up life and pension products as long-term financial planning tools, while insurers are leaning into these segments for their predictable income streams.
Jacqueline Karasha, chief executive of SanlamAllianz Life Insurance, said in a phone interview that the life insurance business has, for several years, enjoyed a faster growth pace compared with the general business, mainly driven by individual life covers and pension deposit administration lines.
‘Deposit administration has gained traction on the back of stable returns, direct distribution channels and bancassurance, while fund managers have become more proactive in marketing pension products. At the same time, insurers have stepped up investment in marketing, financial literacy and distribution channels,’ said Ms Karasha.
Premiums from deposit administration grew 18 percent to Sh79.75 billion in the period, life assurance grew nine percent to Sh46.3 billion, and investments rose 3.9 times to Sh30.3 billion. Personal pension business grew by 14.9 percent to Sh24.97 billion, closing the top four major classes of life products.
Ms Karasha said part of the boost in pension business has also been through the enhanced compulsory contributions to the National Social Security Fund, part of which is managed by life insurers. Many life insurers have also been launching new products and enriching existing ones to cater for the evolving needs, such as simplified policies, digital onboarding and claims management.
Life products have lower claims volatility compared to general business, which is often hit by rising claims in medical and motor covers-the two main classes that take up over 68 percent of the gross premium income under short-term business.
The rebalancing could improve profitability and capital stability for insurers, given the long-term nature of life policies.
For general insurers, the shift raises pressure to reprice risk more accurately or innovate to counter slowing growth in their core segments.
‘That turn shows that, as a market, we are on track to increase insurance penetration. This is a good signal of sustained industry growth going forward. You cannot leverage much on short-term covers to deepen penetration,’ said Ms Karasha.