Indian insurance brokerage firm IIRM enters Kenyan market
Business
By
Brian Ngugi
| May 12, 2024
An Indian insurance and reinsurance broking firm, IIRM Holdings, is setting up shop in Kenya.
The new subsidiary, IIRM Kenya, will target the Kenyan insurance market, long seen as a lucrative opportunity.
IIRM boasts a long history, established in 1999 before India even formalized its insurance sector. They specialize in insurance consulting and distribution across various categories, including commercial lines, employee benefits, and individual policies.
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The company currently manages a significant portfolio, serving over 2,000 corporate clients and 200,000 individual customers, with a combined premium size of $300 million (Sh39.4 billion).
IIRM has a broad presence with 9 offices in India and now expanding internationally with locations in Sri Lanka, Maldives, Singapore, and Kenya.
IIRM said it plans to leverage Kenya as a regional hub. It will aim to utilize their connection with Amwins Global Risks, a major Lloyd's broking operation based in London, to tap into the global specialty insurance market.
IIRM Vice Chairman Vurakaranam Ramakrishna says he sees a significant opportunity in Kenya. He aims to replicate the broker-dominated model present in India, leveraging technology to disrupt the market.
Ramakrishna believes Kenya allows for a faster transformation compared to India's 15-year journey.
Their goal is to achieve this within 3-5 years. With Nairobi as a hub, IIRM aims to expand across the African continent in the coming years.
"The Indian market is completely dominated by brokers. We will replicate what is happening in India," he said in a statement.
"Technology will be a huge disruption. We have already seen disruption in the Indian market and we would like to champion that change."
He added: "We want to add value to the insurance companies, economy and corporate entities, get them better coverages, educate them on emerging risks that are happening at both at the retail and at the institutional levels."
IIRM goes beyond traditional insurance categories like property and employee benefits. They offer specialized coverage for modern risks, including cyberattacks, directors and officers liability (D&O), and trade credit issues.
The Kenyan insurance regulator sees IIRM's entry as a positive development. Ann Chelagat, Director of Market Conduct at the Insurance Regulatory Authority (IRA), expressed hope that IIRM will fill market gaps and introduce innovative solutions. She highlighted the potential for expansion into other East African countries if successful in Kenya.
"We welcome the new kid on the block. You are coming to fill in a gap. We have a lot of expectations and we are keeping an eye on you to see if you can manage what you promised. We are hopeful that you will bring in some new innovation," said Ms Chelagat in a statement.
"If you do well in Kenya, the rest of EAC countries will be easy and eventually manage Africa."