From Standard Digital

In November last year, the Society for International Development released a report on the state of East Africa.

The report, whose focus subject was The future of inequality in East Africa, had a subtle message: Kenyans are holding less non-financial assets – like land – compared to their peers in Uganda, Rwanda, Tanzania and Burundi.

Instead, Kenyans are putting more of their money into financial assets like shares at the Nairobi Securities Exchange.

The report nonetheless proved what was evident all along: Kenyans are modernising faster than the rest of the region.

But it is in appreciating what opportunities this modernisation creates for the Kenyan economy that one is able to understand where the next billionaires in the economy will come from.

The biggest beneficiaries in Kenyans shift in mindset from resources like land to financial assets this year are set to be owners of insurance companies, both private and public.

Diversification As Kenyans diversify their acquisition of assets, they will require some form of security for these assets.

This means more people will be willing to take up insurance cover not only for their health and the compulsory insurance for their cars but also for their businesses, laptops, smartphones and household goods.

Insurance companies have already devised ways of pushing their products through the ubiquitous mobile phones, significantly cutting their costs.

All this is set to herald a significant shift in the market for insurance products, with owners of insurance companies set to rake in billion of shillings as they cash in on acquisitions, or use the increase in premiums to expand their business empire.

It is in this context that activities in the insurance sector over the next three months should be looked at.

Nairobi Securities Exchange-listed insurer Britam should complete its acquisition of Real insurance by end of March.

Written by Emmanuel Were | Read more at Standard Digital