Insurance Claims Inflict Sh39B Pain On Companies In Just 3 Months

Kenya’s insurance industry paid insurance claims worth Ksh39.1 billion in the first quarter of 2023, representing a 6% increase compared to the same period in 2022 when they paid Ksh36.77 billion.

The Insurance Regulatory Authority (IRA) January-March 2023 claims report indicates the industry paid about 2.4 million claims, a 14.2 % from last year’s figure of 2.1 million claims.

During the quarter General liability and non-liability claims paid were 10,619 worth Ksh4.59 billion and 1,600,327 claims worth Ksh16.31 billion.

Long-term paid 875,980 claims valued at Ksh18.20 billion in the period under review. Overall Insurance claims in the first quarter of 2023 hit over 2.6 million.

General liability claims were 16,128, a 49% drop from the same period last year that had 32,148 claims. Non-liability claims hit 1,753,561 a 20% drop compared to 2,115, 834 in the same period last year.

In the long-term insurance business, underwriters reported 876,105 claims, a 774% increase compared to 100, 209 claims re[ported in the quarter ending March 2022.

Both long term and general insurance business underwriters are required to submit monthly summary of claims returns to IRA through the electronic regulatory system (ERS). These returns are submitted within 15 days from the end of the month to which they relate.