Insurance professionals including brokers, agents and loss adjusters now face mandatory annual training costing thousands of shillings under the new law that aims to raise the skills and ethical standards in the industry.
The mandatory training is contained in the Insurance Professionals Act, 2024, which President William Ruto signed into law on Tuesday, providing for Continuing Professional Development (CPD).
CPD refers to an ongoing process of learning that helps professionals enhance their skills, knowledge, and competencies. It is designed to support career advancement, ensure professional effectiveness, and maintain alignment with industry standards.
The move to introduce mandatory CPD for insurance practitioners mirrors the requirement in several other professions such as medical and dental practitioners, engineers, procurement and supply chain professionals where CPD points are required before license renewal and continued practice.
The new law means insurers must now track and report every professional’s CPD hours since missing targets could jeopardise the renewal of license of these intermediaries.
Intermediaries, including agents, will incur training fees and time away from work to accumulate the CPD hours. Creation of a structured CPD programme will be undertaken by the Insurance Institute of Kenya (IIK) —one of the key bodies that has been provided in the new law to oversee insurance profession in Kenya.
IIK is the umbrella body for insurance professionals in Kenya. It was formed in 1948 as an affiliate of the Chartered Insurance Institute London until 2002 when it was registered as a society by the registrar of societies.
The new law says IIK will “co-ordinate and oversee continuous professional development of insurance professionals,” among other roles.
Other bodies provided for in the new law include the Insurance Professionals Examinations Board and the Registration of Insurance Professionals Committee. They will be responsible for examining, registering and regulating professional conduct.
The CPD programme will offer accredited training sessions, workshops, and seminars, monitor and record CPD activities and ensure that professionals meet the required standards.
The new law seeks to ensure that individuals working in the insurance sector are well-trained and adhere to ethical standards so as to boost consumer confidence and help lift the penetration level from the current 2.43 percent.
The new law reinforces that all insurance professionals will be required to hold valid licenses issued by Insurance Regulatory Authority (IRA), ensuring that only qualified individuals can practice in the sector. It also provides for the development of a code of conduct and professional standards that all licensed insurance professionals must adhere to.
IRA data shows Kenya’s insurance industry had 14,560 insurance agents at the end of December 2024. In addition, it had 180 insurance brokers and 30 reinsurance brokers.
Insurance agents are either considered captive agents or independent agents. In Kenya, insurance agents have to be registered by IRA with their licenses renewed every year at a cost of Sh1,000.
