Kenyans have been waiting with bated breath for this year’s general election and insurance companies have seen it as an opportunity to make some profit. No one wishes it, but if 2007’s tragic debacle is anything to live by, then tens of thousands (if not hundreds) need riot insurance.

Looking back at the devastating events that culminated in the wake of the 2007 post-election crisis, some insurers have seen fit to offer a package that may not have been so popular before. UAP, Jubilee Insurance, Heritage and APA are just some of the companies with a Political Risk cover package.

According to the Africa Trade Insurance Agency (ATI), the likelihood of chaos unfolding during this year's March 4 General Election has prompted local businesses to take up insurance against what is termed as Political Risk. The Agency reports that the uptake of Political Risk packages has gone up 3,000 per cent from KES 1.3 billion in 2008 to KES 41 billion by December of 2012. The growing uptake has even encouraged the Association of Kenya Insurers (AKI) to form a collection of 20 local insurance firms to help manage the situation.

“There is a growing increase in demand for Political Risk covers,” said ATI Senior Marketing Officer Souvik Banerjea. Speaking during a press conference earlier this week, he noted that premiums are expected to go up this year.

Political Risk insurance covers damages caused by politically-incited violence, nationalisation of businesses as well as foreign exchange controls that are associated with regime change.

[caption id="attachment_28772" align="alignleft" width="300"] Image source: trinityafer.com[/caption]

According to one of the local dailies, Banks are said to be insuring loans, discounted invoices and letters of credit offered to businesses to a tune of about KES 4.5 billion. The paper reports that Banks were among the most affected after some of their clients were unable to repay loans after their businesses were destroyed during the wake of the 2007/2008 post-election crisis. It looks like those who fail to learn from history are doomed to repeat it. Those that take a leaf from its book will definitely be prepared.