An insurance broker sells, solicits, or negotiates insurance policies for compensation. A reinsurance broker is acts as an intermediary between an insurance company and a reinsurance company. Medical Insurance Providers (MIPs) cover the whole or a part of the risk of a person incurring medical expenses. The Insurance Regulatory Authority (IRA) is a statutory government agency that regulates, supervises and develops the insurance industry.
IRA also mandated to register new insurance brokers, reinsurance brokers and medical insurance providers in Kenya. The registration requirements for insurance brokers, reinsurance brokers and medical insurance providers are detailed in Section 150 to section 156 of the Insurance Act Cap 487 of the Laws of Kenya and include the following.
Requirements for registration of insurance brokers, reinsurance brokers and medical insurance providers in Kenya
- Registration fee Ksh 10,000 payable to the Insurance Regulatory Authority.
- Bank guarantee of Ksh 3 million from a commercial bank in the prescribed format, or a government bond of at least two years in favor of IRA.
- A Professional Indemnity Insurance Policy with a minimum limit of Ksh 10 million. All professional indemnity policies must expire on 31st December of the year of registration.
- A minimum paid-up share capital of Ksh 1 million.
- CR-12 form detailing the shareholding structure of the company.
- At least 60% of the shares shall be held by Kenyan citizen(s).
- The registered name of the applicant should be in line with section 190 of the Insurance Act Cap 487.
- A certified copy of the certificate of incorporation.
- A CR-2 form.
- The applicant should submit the following in respect to the Principal Officer:
- Curriculum Vitae and Testimonials.
- A degree or a diploma in insurance from a recognized institution.
- Evidence of at least five years experience in insurance business.
- Identification documents (National Identification Card/Passport).
- An Appointment letter where applicable.
- Duly completed fit and proper form.
- Work permit valid for a period of at least two years in case of foreigners.
- Submit the statement of business; Form No. INS 151-1 (in case of renewal).
- New applicants should submit a 3-year business plan.
- All directors should submit identification documents and duly completed fit and proper forms.
- The applicant should submit an auditor’s certificate of separation of accounts.
