Insurance Industry Reports a Fall In Third Quarter Claims

The insurance industry reports that claims in the period July to September 2022 declined by 12% to 1.8 million compared to two million reported in the second quarter of 2022. The Insurance Regulatory Authority (IRA) Quarter 3  claims  report  indicates that during the quarter, general insurance business claims reported were 1,705, 020 compared to 1,965,735 in the previous quarter.

Long-term insurance claims hit 106,121, an increase from 99,678 reported in the second quarter of 2022. Consequently claims paid in relation to the total number of claims actionable during the quarter went up in the general insurance business.

“In the period under review the claims payment ratio for general liability claims increased to 10.6% (Q2 2022: 7.4%). The claims payment ratio for general non-liability claims increased to 75.5% in Q3 2022 from 75.3% in Q2 2022,” the report states.  The claims payment ratio for the long-term insurance business, however, decreased to 73.3% compared to 75.7% observed in the previous quarter.

See Also >> City Bus Company To Offer Door-To-Door Transport

Claims paid during the quarter decreased by 9.6% to  1.79 million compared to 1.98 million paid in the Q2, 2022.  General insurance business liability claims paid were 12,055 compared to 10,709  paid in the previous quarter while general insurance non liability claims paid hit 1.68 million from 1.87 million paid in the previous quarter.

On the other hand 101,329 long-term insurance business claims were paid during the quarter, compared to 104,574 in Q2, 2022.

During the same period, the proportion of general business liability claims closed as number of claims decreased to 1.3% compared to 3.0% observed in Q2 2022. The proportion of general business non-liability claims closed as number claims decreased to 0.5% in Q3 2022 from 0.7% in Q2 2022.

The proportion of long-term insurance business claims closed as number claims decreased to 0.41% in Q3 2022 from 0.65% in Q2 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.

Next Read >> Firms Partner To Provide Boda Boda With Affordable Insurance