A Comparison of Europe's solvency II model to Kenya's risk based capital framework.

Abstract

Kenya has experienced a lot of growth on the insurance industry to the extent of being ranked the best insurance industry in the East African region. Part of this growth can be attributed to the change of the solvency framework to Capital Based risk model that has seen insurance companies become more stable. This growth has however not reflected in the position of the Kenyan industry in comparison to the global markets. This study has compared the solvency frameworks for Kenya to that of Europe which is among the leading insurance industries globally to find out what improvements Kenyan insurers can make to their framework to improve efficiency of the industry leading to increased growth.