KIC Demonstrates Strong Performance in H1 2024

Building on the successes achieved in 2023, KIC has delivered further strong growth in premium levels through the first half of 2024. Gross written premiums increased to €15m from €6m for the corresponding period in 2023, marking a year-on-year rise of 250%. Our Asian/Middle East operations and West African business were significant contributors to this growth, although our US generated inward reinsurance was a developing factor in our growth. Strong performance from our Sureties division contributed to KIC semiannual results as well. Additionally, our net underwriting result rose from €4.1m in 2023 to €6.8m for the half-year to 30th June 2024, reflecting a 65% increase. This highlights our continued commitment to strong underwriting and rigorous business acceptance criteria.

Net profits also saw a significant increase, rising from €2.6m in H1 2023 to €5.1m in H1 2024. We have maintained control over our cost base while making strategic investments in our back-office operations to support growth. At the same time, we continue to expand our underwriting team to ensure that risks are assessed according to our robust governance framework.

This period has also been one of significant transformation for KIC. We’ve implemented several important changes within the company and successfully launched a comprehensive rebranding effort. These initiatives were aimed at enhancing our market presence, refining our operations, and better aligning our services with the evolving needs of our clients. It’s a testament to the hard work and dedication of the entire KIC team that we’ve managed to achieve such strong performance during this time of internal development.

I am proud to acknowledge the remarkable efforts of the KIC team, who have delivered impressive results in the first half of this year, even while driving forward these important changes. We remain committed to acting in the best interests of our clients, stakeholders, and staff, and we will continue to provide competitive, professional service as we embrace this new phase of growth. I extend my sincere thanks to our staff, professional partners, and clients for their continued support.

Shay Reches

Chief Executive Officer

KIC Rebranding: A Vision for the Future

As KIC continues to evolve as a growing force in the insurance and reinsurance markets, our recent rebranding reflects both the depth of our two decades of experience and our forward-thinking vision for the future. This transformation wasn’t just about refreshing our look—it symbolizes our commitment to innovation, growth, and excellence in serving our clients.

Our new brand identity is visually anchored by four key colours, each carrying symbolic meaning. The primary colour, purple, represents the strength and integrity that have been the foundation of our business for 20 years. In addition, we introduced three complementary colours to represent our main lines of business: blue for insurance, pink for reinsurance, and yellow for sureties. These colours reflect our strategic focus and expertise in each of these areas, bringing clarity and unity to our diverse operations.

Driven by a clear vision to align our brand with the dynamic global markets we serve, the rebranding reinforces our position as a trusted partner. While innovation and progress define our future, we remain grounded in the principles that have shaped our success—strong underwriting, prudent risk management, and tailored solutions. This rebranding marks an exciting new chapter as we build on our legacy while embracing the opportunities ahead.

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KIC Honoured at the 3rd RIBA Annual Conference

  We are pleased to share that KIC was honoured at the recent RIBA Annual Conference in Rwanda, receiving an award for outstanding support in the insurance and reinsurance industry. This recognition is a testament to our dedication to excellence and our unwavering commitment to supporting the African market. Our team from the Cote d’Ivoire hub proudly attended the event, representing one of our two dedicated African hubs that serve this critical region. With hubs in both West and East Africa, we are positioned to address the diverse and evolving needs of our clients across the continent. Our close relationships with brokers are integral to this success. By maintaining open communication, trust, and a collaborative approach, we work closely with our broker partners to develop tailored solutions that benefit all stakeholders. This award highlights not only the strength of our partnerships but also our ongoing investment in Africa’s growth. We look forward to continuing to deepen our relationships and expand our footprint across the region, ensuring that we remain a trusted and reliable partner for the years ahead.

Danny’s insights on AI

What is fair and responsible AI?

We have just witnessed the release of the latest version of Chat GPT, and what I have observed so far is truly astounding in terms of its capabilities.
It takes instructions and proactively analyses what is asked and produces answers within seconds – to a very high quality.

AI in the insurance space

With this power, there are a host of other things that can be done. Some of it would be for the benefit of businesses and consumers, but it could also be used for negative reasons as well. It can shorten the time it takes to put together PowerPoint presentations, take minutes, summarise meetings and even draft correspondence according to a specified tone and language. Furthermore, it would be able to provide legal opinions, to the same level as qualified experienced attorneys.

What we are finding more and more in the insurance space is that AI is able to underwrite policies by applying specific rating tables and underwriting criteria, as well as administering claims in ways human beings are not able to do. It is able to assess damages on vehicles from photographs as an example, source part prices and then provide a final assessment quote within seconds. It can check facts provided by policyholders for fraud, but we are still in the early stages comparatively speaking.

A dangerous shadow that comes in with it

Because of the power of the tool (I only touched a small number of examples above) there is a dangerous shadow that comes in with it. There still needs to be a human specialist to be able to check whether the output that is produced is correct and accurate. The longer AI becomes part of our lives, such experts (needed to check AI) will become fewer and fewer as more of the younger generation will become reliant on the output without needing to think and analyse the data that gets given. For example, if a legal opinion is produced, you would need a lawyer who can still read the opinion and agree on the level of its findings. Already the quality of case law research that can be done and analysed is very impressive. You need the attorneys who grew up without AI to be available.

The other dark side is the clear potential for fraud, theft and other criminal behaviour. We are already very reliant on voice and facial recognition to identify ourselves. AI is already at a point where it can imitate people’s looks, voices and characteristics and theft of identity will be common to hack into bank accounts, if this has not happened already. Our phones and sensitive applications are easy to access with facial recognition. Imagine if an AI-supported call phoned you in your spouse’s voice to confirm a password for the credit card or bank account. The dangers as well of AI making major decisions for people in sensitive cases like wars, criminal prosecutions and other public policies shows the danger of where this can lead.

The major world legal jurisdictions are in the process of drafting regulations to deal with AI to make sure it’s fairly and responsibly used by corporates, and it’s done for the right purposes with proper checks and balances. If it is left to run unchecked and unregulated, many areas that are currently being administered by human beings may be taken over by machines which can be dangerous, given how early we are in the development.

Developments in this area

Out of curiosity, I recently saw a new dental procedure where robots are conducting all examinations. There must be established standards for these AI-supported robots, as they influence both health and financial advice, with AI systems now managing unit trusts. Can a computer be held legally responsible? There are significant legal and IT developments in this area.

Danny Joffe
Director & Chairman of Risk Committee