The Insurance (Products) Guidelines, 2022

LAWS OF KENYA
THE INSURANCE (PRODUCTS) GUIDELINES, 2022
NO. 3641 OF 2022
Revised and published by the National Council for Law Reporting
with the authority of the Attorney-General as gazetted by the Government Printer
www.kenyalaw.org

published by the National Council for Law Reporting
with the authority of the Attorney-General as gazetted by the Government Printer
www.kenyalaw.org

Kenya
Insurance Act
The Insurance (Products) Guidelines, 2022
Gazette Notice 3641 of 2022
Legislation as at 29 March 2022
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the creator.
• NC: Only noncommercial uses of the work are permitted.
• SA: Adaptations must be shared under the same terms.
Share widely and freely.

The Insurance (Products) Guidelines, 2022 (Gazette Notice 3641 of 2022)
Contents
STATEMENT OF INTENT .................................................................................................................................................................................... 1
1. Citation ................................................................................................................................................................................................................ 1
2. Interpretation .................................................................................................................................................................................................... 1
3. Application ......................................................................................................................................................................................................... 1
4. Purpose ................................................................................................................................................................................................................ 1
5.

................................................................................................................................................. 1
5.

General Requirements ................................................................................................................................................................................... 2
6. Filing .................................................................................................................................................................................................................... 2
7. Meeting ................................................................................................................................................................................................................ 3
8. Reporting ............................................................................................................................................................................................................ 3
9. Withdrawal ......................................................................................................................................................................................................... 3
10.

................................................................................................................................................ 3
10.

Enforcement .................................................................................................................................................................................................... 4

.................................................................................................................................................... 4

The Insurance (Products) Guidelines, 2022 (Gazette Notice 3641 of 2022) Kenya
INSURANCE ACT
THE INSURANCE (PRODUCTS) GUIDELINES, 2022
GAZETTE NOTICE 3641 OF 2022
Published in Kenya Gazette Vol. CXXIV—No. 56 on 29 March 2022
Commenced on 29 March 2022
STATEMENT OF INTENT
THE Insurance (Products) Guidelines are made by the Insurance Regulatory Authority pursuant to section 3A
(1) (g) of the Insurance Act and are intended to enhance the transparency and efficiency of the product approval
process by providing insurers and intermediaries with guidance on what constitutes a new or repackaged
product; and detailing the information required to be submitted to the Authority when submitting new or
repackaged products for approval. 1. Citation
These Guidelines may be cited as the Insurance (Products) Guidelines, 2022. 2.

ty when submitting new or
repackaged products for approval. 1. Citation
These Guidelines may be cited as the Insurance (Products) Guidelines, 2022. 2.

Interpretation
In these Guidelines, unless the context otherwise requires—
“insurer” means a person, registered under the Act, who carries on insurance business;
“insurance product” means products and services developed, marketed and offered by an insurer;
“new product” means an insurance product that is to be introduced in the market and has not previously
sold by an insurer;
“pilot testing” in relation to new product, means offering an insurance product to a few select customers
on an experimental basis to assess the performance of the product before it is offered to the larger market;
“repackaged product” means an existing insurance product that has been enhanced or varied;
“Shari’ah Advisory Council” means a committee of scholars who are well-versed and competent in
Shari’ah and its approaches to finance and are appointed by the insurer; and
“treating customer fairly” means an outcome based regulatory and supervisory approach designed to
ensure that an entity delivers specific, clearly set out fairness outcome for its customers. 3. Application
These Guidelines shall apply to all insurers and intermediaries registered under the Insurance Act. 4.

rness outcome for its customers. 3. Application
These Guidelines shall apply to all insurers and intermediaries registered under the Insurance Act. 4.

Purpose
The purpose of these Guidelines is to enhance the transparency and efficiency of the product approval
process by—
(a) providing insurers and intermediaries with guidance on what constitutes a new or repackaged
product; and
(b) detailing the information required to be submitted to the Authority when submitting new or
repackaged products for approval. 1

ckaged
product; and
(b) detailing the information required to be submitted to the Authority when submitting new or
repackaged products for approval. 1

The Insurance (Products) Guidelines, 2022 (Gazette Notice 3641 of 2022) Kenya
5. General Requirements
(1) The board and management of an insurer shall be responsible for the development of new or
repackaged products. (2) An insurer shall develop, document and implement policies and procedures to prudently manage
risks associated with the products it offers and ensure the needs and rights of consumers are
appropriately addressed.

procedures to prudently manage
risks associated with the products it offers and ensure the needs and rights of consumers are
appropriately addressed.

(3) When designing and pricing an insurance product, an insurer shall consider among others—
(a) that the new product falls within the ambit of insurance business;
(b) adherence to principles relating to the fair treatment of customers;
(c) evolving needs of the customer;
(d) policyholders’ reasonable expectations;
(e) transparency and clarity in wordings, terms, coverage, exclusions and conditions;
(f) sound and prudent underwriting and actuarial basis;
(g) information relating to the product should be in simple and understandable language;
(h) the terms, conditions, exclusions and warranties of the contract shall be fair to both parties;
(i) appropriate data or technical justification;
(j) the underwriting policy of the insurer;
(k) assigning capital to all products and monitoring of the performance of the product to gauge
the continuing need of capital;
(l) a business case for new or enhanced product;
(m) pilot testing and analysis to be done after a no objection by the Authority;
(n) cost benefit analysis;
(o) risk identification, assessment and mitigation;
(p) an implementation plan for the product, including milestones;
(q) clearly defined and appropriate levels of delegation for approval of all material aspects of
product design;
(r) post-implementation review; and
(s) an actuarial review during the pricing process.

gation for approval of all material aspects of
product design;
(r) post-implementation review; and
(s) an actuarial review during the pricing process.

6. Filing
(1) An application for approval of a product shall contain—
(a) formal application letter giving indication to the Authority of the piloting, commencement
of sale or launch of the product;
(b) the policy wording documentation;
(c) proposal form;
(d) claim form;
(e) marketing brochure;
2

ing, commencement
of sale or launch of the product;
(b) the policy wording documentation;
(c) proposal form;
(d) claim form;
(e) marketing brochure;
2

The Insurance (Products) Guidelines, 2022 (Gazette Notice 3641 of 2022) Kenya
(f) actuarial premium pricing structure or actuary’s report for life insurance products;
(g) reinsurance agreement or statement;
(h) Product Business Plan (at least three years);
(i) Service Level Agreement (if applicable);
(j) demonstration of measures taken during product design to prevent the use of the product for
Money Laundering and Terrorism Financing;
(k) an approval from Shariah Advisory Council in case of takaful products; and
(l) any other relevant information. (2) The proposal form, claim form and marketing brochure of an insurance product shall prominently
bear the name of the insurer and that the insurer is regulated by the Insurance Regulatory
Authority. (3) The insurer shall only commence the pilot or sale of an insurance product upon receipt of a letter of
no objection for the pilot or an approval for the sale from the Authority. (4) An insurer or intermediary shall market and promote insurance products or services in a manner
that is clear, fair, truthful and conforms to the approved product. 7.

ntermediary shall market and promote insurance products or services in a manner
that is clear, fair, truthful and conforms to the approved product. 7.

Meeting
(1) The marketing information provided shall—
(a) be easily understandable;
(b) be consistent with the result reasonably expected to be achieved by the majority of
customers of that product including illustrations where necessary;
(c) state prominently the basis for any claims or benefits and any significant limitations;
(d) not hide, diminish or obscure important statements or warnings; and
(e) be consistent with the terms and conditions of their application to the Authority. (2) If an insurer or intermediary becomes aware that the information provided is not accurate and
clear or is misleading, it shall withdraw the information and notify any persons that it knows to be
relying on the information as soon as reasonably practicable. (3) An insurer or intermediary shall ensure that any advertising and promotional material is consistent
with the terms and conditions of their application to the Authority. 8. Reporting
An insurer or an intermediary shall submit annual reports to the Authority on the performance of each
approved product, for a period of three years after the commencement of the sale in a specified form. 9.

s to the Authority on the performance of each
approved product, for a period of three years after the commencement of the sale in a specified form. 9.

Withdrawal
(1) An insurer or intermediary who intends to withdraw any insurance product shall—
(a) notify the Authority of the intention to withdraw the insurance product from the market
including reasons for the withdrawal; and
(b) satisfy the Authority that it has put in place sufficient measures to protect the interests of
the existing policyholders. (2) The Authority may at its discretion require the insurer or intermediary to notify the public of the
withdrawal of an insurance product from the market. 3

Authority may at its discretion require the insurer or intermediary to notify the public of the
withdrawal of an insurance product from the market. 3

The Insurance (Products) Guidelines, 2022 (Gazette Notice 3641 of 2022) Kenya
10. Enforcement
Where the Authority determines non–compliance with the provisions of these Guidelines, it may take any
intervention prescribed in the Act and may include the following—
(a) direct the insurer or intermediary to take appropriate remedial action;
(b) withdraw or impose conditions on the sale of the insurance product taking into account the nature
of the breach;
(c) impose additional reporting requirements and monitoring activities;
(d) withdraw or impose conditions on the business license taking into account the nature of the breach;
(e) impose monetary penalties as provided for under the Act; and
(f) take any other action as may be deemed necessary.
4