CIC Insurance Issues Profit Warning As Economy Bites

The CIC Insurance Group has issued a profit warning to its shareholders, showing how businesses are struggling to remain afloat in Kenya.

In a statement, the CIC board of directors says it expects profits for the financial year 2019 to drop by more than 25 percent.

“The board wishes to announce that basing of the projections of the remainder of the year, the net profit for the 2019 financial year is expected to be lower than 25 percent of the net profit reported at the same time in 2018,” said CIC Insurance Group.

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CIC has promised to release details of the company’s financial position during the release of 2019 financial results that will be published at the end of March 2020.

The company says that it is optimistic that the business will perform well “in the future.”

Insurance services in Kenya remain low in terms of uptake among Kenyans. The penetration rate is still below 3 percent thought stakeholders say the rate is healthy.

Insurance companies have been blamed for lack of innovation and failure to address the misconception among Kenyans concerning the insurance companies in Kenya.

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Many Kenyans do not believe in insurance companies because the majority of them are considered as cash cows only out to milk cash out of desperate and frustrated Kenyans.

Three things Kenyan insurance companies can do to bloom:

Innovate – the insurance sector in Kenya lacks innovation. There is a need to innovate and crack into what Kenyans want. There is a need for products that resonate with Kenyans.

Inform – there is little information about insurance companies in Kenya. Insurance companies should try as much as possible to put out as much information as possible to their consumers.

Be open and transparent- what lacks in insurance companies in Kenya is trust. Kenyans don’t trust them. They need to create that trust with their consumers.

What is your take about the insurance sector in Kenya?

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