Kenya’s Insurance Industry Claims Decline in Q3, 2022 by 12 %

0
157
Insurance Regulatory Authority Open Day in Kisii County. PHOTO Jun 9, 2021

Kenya’s insurance industry reported claims from July to September 2022 declined by 12 % to 1.8 million compared to 2 million reported in the year’s second quarter.

The Insurance Regulatory Authority (IRA) Quarter 3 Claims Report disclosed that during the quarter, general insurance business claims reported were 1,705 020 compared to 1,965,735 reported in Q2, 2022 in the previous quarter.

Long-term Insurance claims hit 106,121, an increase compared to 99,678 reported in the second quarter of 2022.

Consequently, claims paid 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.

However, the claims payment ratio for the long-term insurance business decreased to 73.3% compared to the 75.7% observed in the previous quarter.

Claims paid during the quarter decreased by 9.6% to 1.79 million compared to 1.98 million paid in 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 last 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 no claims decreased to 1.3% compared to 3.0% observed in Q2 2022. The proportion of general
business non-liability claims closed as no claims decreased to 0.5% in Q3 2022 from 0.7% in Q2 2022.

The proportion of long-term insurance business claims closed as no claims decreased to 0.41% in Q3 2022 from 0.65% in Q2 2022.

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


 

 

Leave a reply