Key players in Kenya’s bancassurance sector are calling for urgent reforms to the country’s insurance regulatory framework, warning that outdated laws are stifling innovation and failing to keep up with shifts in the financial services landscape.

The concerns emerged during the 3rd Annual Bancassurance Association of Kenya (BAK) Conference, where stakeholders stressed that the current system does not support the dynamic nature of the market or digital advancements shaping customer behavior.

Bancassurance, where banks offer insurance products, has been instrumental in expanding coverage. But industry leaders say its future is threatened without an overhaul of existing policies and oversight mechanisms.

BAK Chairperson and KCB Bancassurance Intermediary MD, Aggrey Mulumbi, highlighted the disconnect between regulation and the realities of today’s market, which is increasingly driven by fintech, mobile apps, Saccos, and telcos.

“We’ve made strong gains in insurance access through bancassurance, but the environment has changed. Regulation must now reflect joint ventures, digital-first models, and alternative distribution channels,” said Mulumbi.

He called on the Insurance Regulatory Authority (IRA) to partner with the industry in crafting a progressive, innovation-ready framework that doesn’t compromise consumer protection.

The conference also touched on the recent rollout of new compliance measures aimed at boosting transparency in insurance distribution.

While broadly welcomed, sector players argue the rules may impose excessive administrative burdens and hinder service delivery particularly to underserved populations if implemented without sufficient industry engagement.

Old Mutual Group CEO Arthur Oginga emphasized the need for collaboration, cautioning against viewing the matter through the lens of market rivalry.

“This isn’t about competition it’s about working together to serve the evolving needs of Kenyan consumers,” Oginga said.