IPMI Inflation in Kenya
In 2015, Kenya saw an average IPMI inflation rate of 9.1%, a sizeable increase over the 6.3% inflation rate seen in 2014. While higher than last year, this year's inflation rate in Kenya is about on par with the global average increase of 9.2%. While like every other country in this report, inflation is on the rise again, Kenya's IPMI market has fared well with the country being tied with Indonesia for the second lowest inflation of the countries included in this report.
One interesting point to note is that when the IPMI inflation rate is compared with the Consumer Price Inflation rate of 6.01% as of March 2015, the IPMI rate for Kenya is the only rate in the report that has actually been below the Consumer Price inflation in recent history.
Looking at inflation from each insurer, inflation ranged from as low as 6.3% to just over 10% (10.1%). This 3.7% spread puts Kenya among the lowest spreads, which tells us that many insurers are likely grouping IPMI plans sold in Kenya into a similar group as the other low spread countries. This in turn explains why IPMI inflation in Kenya follows global IPMI inflation trends instead of local Consumer Price Inflation trends.
In the coming year, Pacific Prime expects to see IPMI premiums continue to increase with global trends.