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{
    "id": 1521409,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1521409/?format=api",
    "text_counter": 290,
    "type": "speech",
    "speaker_name": "Eldas, JP",
    "speaker_title": "Hon. Adan Keynan",
    "speaker": {
        "id": 41,
        "legal_name": "Adan Wehliye Keynan",
        "slug": "adan-keynan"
    },
    "content": "The Proposed Bill also represents a significant step towards strengthening Kenya's insurance sector by instituting regulatory oversight, enhancing professionalism and protecting consumers. One of the seven principles of insurance is that you must act in utmost good faith. Can this be defined? Can it be quantified in modern-day Kenya? It is difficult. The second principle is that you must indemnify the consumer, the person taking a cover. The other principle is that it must also contribute to the welfare of that particular individual and the particular insurer. The other principle is that it must minimise loss. That is why we take insurance coverage so that in case this happens, one must get a return. For that to happen, both the insurer and the consumer must have some understanding. Previously, it was in good faith. Can that continue in this modern day, where Artificial Intelligence and all kinds of groupings have taken over the global business system? Another principle is that you must have an insurable interest. This is why it has been a debatable issue in modern-day Kenya. Addressing these implementation gaps or reality gaps, we must also admit that the Kenyan public is so much informed. The atmosphere is pregnant with certain expectations when we talk about the benefits in a certain sector. That expectation must be met by the sector through a legally acceptable mechanism by the professionals. This is one thing that we have struggled to do. Therefore, addressing these implementation gaps requires a robust dispute resolution mechanism that will be crucial in realising the full potential of having an insurer. I commend those who have contextualised this brilliant idea. These refinements to the Bill will effectively transform the insurance landscape, fostering a trustworthy, efficient, locally and globally competitive industry. Once this is done, it will provide employment opportunities for many Kenyans and contribute to their economic well-being. It will make Kenya an investment destination. Insurance attracts a lot of capital investment in what I can call 'hot' money. You must have heard this: individuals with more resources look for areas where they can invest. The Bill provides for the regulation of insurance professionals. They are just like other professionals. Lawyers have the Law Society of Kenya; accountants, architects and engineers also have their associations. Professionals in the insurance industry have resisted over the years to come under one professional entity. The Bill proposes to establish three critical regulatory entities: the Insurance Institute of Kenya, the Insurance Professionals Examination Board, and the Registration of Insurance Professionals Committee. These entities will not only examine, register and regulate insurance professionals to uphold ethical conduct and mandate industry standards but will also formalise structures. Practitioners must adhere to these standards and structures in their everyday professional engagement. Secondly, the Bill also attempts to establish professional standards. You will notice that every quack with a piece of paper can go to the streets and talk to a motor vehicle owner or an individual struggling to have a life or medical insurance. Individuals must meet certain professional standards. This means you are expected to undertake a minimum professionally driven, centred and orientated examination to understand the dynamics of that particular sector. It will not be a free-for-all industry where every person is expected to carry a business card and a bag and then pretend to be an agent of any particular entity. I am glad that this is proposed in the Bill. This being a financial sector, professionalism and adherence to ethical codes are paramount. By mandating stringent qualification criteria and continuous oversight, the Bill aims to elevate the level of confidence, competence and integrity among insurance professionals like in any other critical financial profession. Once done, it will foster confidence in the sector, reinforcing credibility. As I said, one of the principles of insurance is to act in utmost good faith. I think this only happens in certain societies, and it is slowly waning because of the changing dynamics of the human race. This will reinforce the credibility of a sector largely driven by acting in good faith. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}