Insurance Companies Record 1.9 Million Claims Payments In 3 Months

Insurance companies in Kenya paid 1.9 million claims in the second quarter of 2022, a 6.3% increase compared to the same period last year.

The Insurance Regulatory Authority (IRA) April  – June   2022 Claims report indicates that during the quarter General insurance business non-liability claims paid were 1,873,836 compared to 1768,031 paid in the Q2, 2021 while General Insurance business liability claims paid were 10, 709 compared to 11,633 paid same period last year.

On the other hand 104, 574 Long-term insurance business claims were paid during the quarter, compared to 90, 204 in Q2, 2021.

Compared to the first quarter 2022, the claims payment ratio for general liability claims increased to 7.4% (Q1 2022: 6.9%). The claims payment ratio for general non-liability claims decreased to 75.2% in Q2 2022 from 77.1% in Q1 2022.

The claims payment ratio for the long-term insurance business increased to 75.7% compared to 70.6% observed in the previous quarter.

“In Q2 2022, the proportion of declined general liability claims increased to 0.06% from 0.02% recorded in Q1 2022. The proportion of declined general non-liability claims remained constant at 0.03% in Q2 2022 and Q1 2022. In addition, the proportion of declined long-term business claims in Q2 2022 decreased to 0.04% from 0.06% recorded in Q1 2022,” the report states.

In the period under review the proportion of general business liability claims closed as no claims increased to 3.0% compared to 2.1% observed in Q1 2022. The proportion of general business non-liability claims closed as no claims increased to 0.7% in Q2 2022 from 0.6% in Q1 2022.

The proportion of long-term insurance business claims closed as no claims increased to 0.65% in Q2 2022 from 0.05% in Q1 2022.

Last quarter, the industry paid claims worth Ksh36.77 billion.

Both long-term and general insurance business underwriters are required to submit a 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.

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