The General Insurance market reported claims incurred amounting to Ksh70.14 billion during the fourth quarter of 2021.
This was an increase of 22.3 percent from Ksh57.36 billion reported in the fourth quarter of the previous year. The claims incurred loss ratio was 68.8 percent in the quarter under review compared to 63.6 percent in Q4 2020
Insurance claims attributed to motor classes business was 50.5 percent of total claims incurred compared to their contribution of 33.8 percent of the total premiums underwritten under general insurance business.
According to IRA’s 2021 fourth quarter report, the high premium volume classes of general insurance business contributed the largest proportions of incurred claims; medical (38.5 percent), motor private (27.7 percent) and motor commercial (22.8 percent).
During the period under review, the claims paid increased by 18.1 percent to Ksh64 billion compared to Ksh54.19 billion paid in Q4 2020.
The report also states that general insurance business underwriting results posted a loss of Ksh6.34 billion in Q4 202 compared to Ksh1.18 billion which was reported at the same time in 2020.
The increase in underwriting losses is mainly attributed to an increase in underwriting losses in motor private and motor commercial classes of insurance business due to relaxation of restrictions that had been imposed on travel due to COVID-19 in 2020.
During the period, general insurance premiums amounted to Ksh152.35 billion.
Medical and motor insurance classes maintained a leading position in terms of contribution in general insurance business premiums at 31 percent and 33.8 percent respectively.
General insurance business remains the largest contributor to industry insurance premium contributing 55.2 percent of the total premium. Motor insurance and medical insurance classes of business account for 64.8 percent of the gross premium income under the general insurance business.
Read: Why Insurance Premiums Rose by Ksh43B in Q4 2021
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