The cost of medical insurance hangs in the balance as the Association of Kenya Insurers (AKI) moves to introduce fixed premium rates. This means that Kenyans may soon pay more for healthcare if the Association manages to convince other stakeholders within the industry.

Speaking on behalf of the organisation earlier this week, AKI Executive Director, Tom Gichuhi said that the rate of inflation was causing the sector to make losses.

According to the Association’s annual report, combined profits for the group’s members fell 0.26% in 2011 to KES 7.78 billion from KES 7.8 billion the previous year. On the other hand, the private motor vehicle insurance sector made an underwriting profit of KES 320.5 million since increasing its premiums in 2010. AKI plans to adopt the same strategy.

Insurance companies currently offer a variety of medical services, most of which are tailored to their customers’ needs. Low-cost health insurance, for instance, can go for as little as KES 2400 in annual premiums. With standardized medical insurance, policy holders may be forced to pay a bare minimum fee which has yet to be disclosed.

The Association, which represents bodies such as British-American, Jubilee, Gateway, Heritage and CFC Life, will discuss the move pending approval from the Insurance Regulatory Authority (IRA).