In Kenya, a micro-insurance license or permit is a regulatory authorization that allows an insurance provider to offer micro-insurance products and services to the public. The license or permit is issued and regulated by the Insurance Regulatory Authority (IRA) of Kenya, the government agency responsible for overseeing the insurance industry. IRA Contact

Apply In-Person:


Step 1: Applicants should meet the eligibility criteria as outlined by the IRA e.g

1. Understand Microinsurance Regulations:

Familiarize yourself with Kenya's insurance regulatory framework, particularly the Insurance Regulatory Authority (IRA). Check for any specific guidelines or regulations related to microinsurance which can be downloaded via te IRA website: IRA Guideline to Insurers

1. Business Plan:

Develop a comprehensive business plan that outlines your microinsurance operations, including the types of products you intend to offer, target market, distribution channels, and financial projections. Ensure that your plan aligns with the regulatory requirements.

1. Company Formation:

Register a company or cooperative society in Kenya, depending on the type of entity you intend to operate. This involves choosing a business structure, such as a limited company or a cooperative society, and registering it with the relevant government agencies.

1. Capital Requirements:

Determine the minimum capital requirements set by the IRA for microinsurance providers. Ensure that you have the necessary capital to meet these requirements which is KES 50 million, however this requirement is subjected to reviewal for time to time by the IRA.

1. Technical Expertise:

Ensure that your management team has the necessary expertise and qualifications to run a microinsurance operation. This includes hiring experienced staff in insurance, risk management, and related fields.

1. Compliance as stipulated by the IRA:

Comply with all regulatory requirements, including solvency margins, financial reporting, and consumer protection measures.

Step 2: Apply for the license:

1. Applicants will be required to obtain and completed the FORM NO. INS 30-1, which can be obtained at the IRA regional offices or downloadable via the IRA Website or directly download the form via this link: FORM NO. INS 30-1
2. Prepare and submit a formal application for a microinsurance license or permit to the Insurance Regulatory Authority (IRA) for review. Include all mandotary documentation as listed below under “Required Docments”of this page

Step 3: Submit the application for review:

1. Upon submission, the application is checked for completeness and correctness by the IRA receiving officer, if everything is in order the applicant is issued with an acknowledgment slip that proves submission of the application file and for inquiry referencing if the need arises.
2. The IRA will review your application, which may take some time. They will assess your financial stability, business plan, compliance with regulations, and other relevant factors.
3. The IRA may request additional information relevant to the application. In such a case, the information must be submitted within a specific period from the date of notification. Where the applicant fails to submit the required information, the Authority shall reject the application.

Step 4: Compliance Inspection:

1. The IRA may conduct an inspection of your business premises to ensure compliance with regulatory standards.

Ste 5: Approval process:

1. The IRA will review your application, conduct due diligence, and assess your financial stability and compliance with regulations.
2. After the successful screening of the submitted documents, Where the Regulatory Authority is satisfied that the applicant has complied with all the requirements as may be applicable; and demonstrated the capacity to meet the obligations and compliance requirements it shall, within 90 days of receiving the complete application and requested additional information, issue a license to the applicant.
3. Notice of the decision (Approval, Deferral, or Rejection) for the application will be communicated to the client in writing.
4. If your application meets all the requirements and is approved by the IRA, you will receive a microinsurance license or permit upon making payment for the registration fees of KSH 150,000.

Step 6: Commence Operations:

1. Once you have obtained the license or permit, you can begin your microinsurance operations in Kenya. Ensure that you continue to comply with all regulatory requirements.

• Duly completed and signed/stamped FORM NO. INS 30-1
• Registration fee of KES 150,000 for a micro insurer, These amounts shall be payable to the Insurance Regulatory Authority.
• Certified copy of the certificate of incorporation of the company.
• Certified copy of the Articles and Memorandum of Association of the company.
• A certified copy of the published prospectus, if any.
• A feasibility study report as outlined under Regulation 7 of the Insurance Regulations.
• Paid up share capital as prescribed in the Insurance Act: as may apply under: Microinsurance business KES 50 million , General Insurance business KES 600 million

and Reinsurance business KES 1 billion

• Details of the shareholders and shareholding structure of the company.
• Curriculum Vitae of the principal officer
• A statement of all the classes of business the proposer intends to transact. The classes of business are prescribed in the schedules to the Insurance Act.
• Specimen proposal and policy forms for all the classes of business the proposer intends to transact.
• The premium rates the proposer intends to apply under each class of business during the year of registration.
• A certificate in connection with the long-term insurance business by an actuary that the premium rates terms and conditions are sound and workable.
• A detailed statement of assets and liabilities in Kenya at the date of application.
• Proposed Reinsurance arrangements.
• A certificate from Central Bank of Kenya specifying the amounts and details of deposits under section 32 of the Insurance Act (equivalent to 5% of the total assets).
• The proposed contract documents with Insurance Agents and Brokers.
• A statement of how the company intends to cover its initial administrative costs.
• The name of the company should be in line with Section 190 and Regulation 15 (4) of the Microinsurance Regulations (in the case of a micro insurer).

Insurance Regulatory Authority (IRA)Zep- Re Place Longonot Road - Upper Hill, Nairobi
Kenya
P.O BOX 43505 - 00100 NAIROBITel: (254)- 020-4996000,Mobile: (254)- 0719047000E-mail: commins@ira.go.ke Complain: complaints@ira.go.ke
Toll Free Line: 0800724499
Website: Link

Eligibility requirements for applying for a micro-insurance license in Kenya may include the following criteria:

• Legal Entity Status: To apply for a micro-insurance license in Kenya, you typically need to be a registered legal entity, such as a company limited by shares. Ensure that your entity is in good legal standing.
• Capital Requirements: Micro-insurance providers are required to meet specific capital adequacy requirements set by the Insurance Regulatory Authority (IRA) of Kenya. These requirements can vary depending on the type of micro-insurance products and services you plan to offer. It's essential to have the necessary capital available to meet these requirements.
• Management and Personnel: Key personnel, such as directors and senior management, should meet the "fit and proper" criteria set by the IRA. This assessment evaluates the competence, experience, and integrity of individuals involved in the management of the micro-insurance company.
• Business Plan: Prepare a comprehensive business plan that outlines your micro-insurance model, target market, product offerings, financial projections, and risk management strategies. Your business plan should demonstrate your ability to serve the low-income and underserved segments effectively.
• Compliance with Regulations: Ensure that your micro-insurance products and services comply with the regulatory guidelines set by the IRA. This includes product design, pricing, and distribution methods.
• Consumer Protection Measures: Develop and implement robust consumer protection measures to ensure that policyholders are treated fairly and receive the benefits they are entitled to.
• Product Approval: Submit your micro-insurance products for approval by the IRA. You will need to demonstrate that your products meet regulatory standards and provide value to the target market.
• Solvency Requirements: Micro-insurers must maintain adequate financial reserves to meet their obligations to policyholders. Ensure that you can meet solvency requirements as stipulated by the IRA.
• Distribution Channels: Consider the distribution channels you plan to use to reach your target market. Micro-insurance providers often leverage alternative distribution methods, such as mobile money platforms, community-based organizations, or agents.
• Compliance with Reporting and Monitoring: Commit to complying with regulatory reporting requirements. Micro-insurers are typically subject to ongoing monitoring and inspections by the IRA to ensure continued compliance with regulations.

Facilitation fees:

• Name search - KES 150 per name
• Registration - KES 2000

Government fees:

• (5% declared nominal capital+ KES 2,020; stamp duty MEMARTS. (Memorandum and Article of Association).
• Bank commission KES 100
• Registration fee at the registrar of companies, as per declared nominal capital
• Registration at IRA KES 150,000
• Declaration of compliance KES 200
• Filling (forms 201; 203 and 208) KES 600

Professional fees:

• Lawyers, for drafting and stamping of memorandum and articles of association KES 30000
• Certified Public Secretary Stamp for Form 203: KES.2000
• Commissioners of Oaths, KES 1000
• Auditors (as negotiated)

• The validity of a micro-insurance license or permit in Kenya is typically determined by the regulatory authority and is subject to renewal, compliance with regulatory standards, and changes in regulations.
• A microinsurer shall apply to the Authority for the renewal of registration annually on or before the 30t" of September.

FORM NO. INS 30-1

Please attach sample completed documents that would help other people.

• The time frame for processing the application is 3 months form the time of submission

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube

width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is dkisplayed.

e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Please provide other instructions related to the certificate/documents.

e.g. The state office holds birth records since January 1908.

• Name and contacts of applicant
• Physical and postal address of registered Office
• Particulars of –
• Members of Board of Directors
• Principal Officer, Company Secretary and other senior management staff
• Departmental staff
• Members of the insurance industry excluding insurers whose services were availed of during the current year
• Bank Institution Banking with
• Share Capital
• Authorised Capital
• Paid up capital
• Business Particulars
• Business Carried on/Proposed to be carried on
• Number of agents (employed or expected to be employed in the next 12 months
• Actuarial Valuation
• Annual Accounts
• Valuation of assets by a member of the Institute of Surveyors of Kenya

• In Kenya, a micro-insurance license or permit is a regulatory authorization that allows an insurance provider to offer micro-insurance products and services to the public. The license or permit is issued and regulated by the Insurance Regulatory Authority (IRA) of Kenya, the government agency responsible for overseeing the insurance industry.

Enter other information which might help.

Please explain what are other uses for obtaining this document/certificate.

e.g. Birth Certificate can be used as proof of identity.

MICROINSURANCE REGULATIONS

More information which might help people.