Nairobi, July 8 -- As inflation and the rising cost of living continue to strain household and business budgets, many people are cutting non-essential spending to stay afloat. Insurance has increasingly found itself on the chopping block, with policyholders reducing coverage limits, dropping optional benefits or delaying policy renewals to lower monthly expenses.

While this may appear to be prudent financial management, reducing insurance cover is often a false economy. It lowers costs today but can expose individuals and businesses to devastating financial losses when the unexpected happens.

The dangers of having no insurance are obvious. The risks of underinsurance, however, are far less visible until a claim is made. You diligently p...