IRA celebrating the regulator’s 10th-year anniversary/IRA
NAIROBI, Kenya Feb 16- Over 2.3 million insurance claims were paid out during the last quarter of 2021, growing 21 percent compared to 1.9 million claims paid over the same period in 2020, data by the Insurance Regulatory Authority (IRA) has revealed.
The latest statistics from the insurance regulator showed that majority of the claims paid were in the non-liability general insurance business which accounted for 95 percent of the total claims paid.
“In Q4 2021, the claims payment ratio for general liability claims decreased to 9.5 percent compared to Q3 2021 that stood at10.2 percent. The claims payment ratio for general non-liability claims increased to 77.1 percent in Q4 2021 from 64.6 percent reported in Q3 2021. The claims payment ratio for the long-term insurance business increased to 74.6 percent compared to 74.1 percent observed in the previous quarter,” the Insurance Regulatory Authority (IRA) October – December 2021 Claims Report stated.
During the review period, liability general insurance business saw 11,717 claims paid while long-term insurance claims paid stood at 93,877.
Between October and December 2021, Jubilee Insurance reported the highest number of claims paid under the non-liability general insurance business at 1.7 million. This is accounted for 73 percent of total claims paid in the insurance sector over the three-month period.
Dubbed East Africa’s largest insurer, Jubilee Holdings has a network of offices in five countries – Kenya, Uganda, Tanzania, Burundi and Mauritius providing insurance services to over 1,900,000 people in the region.
The underwriter is Jubilee the largest provider of medical insurance in Kenya. The firm posted a Sh4.5 billion profit after tax for the half-year ended June 30, 2021, a 150 percent jump compared to Sh1.8 billion reported same period last year.
The significant jump is partly pegged on the gain of Sh 2.1 billion from the sale of 66 per cent of its Kenyan General Insurance business to the Allianz group, in May last year.
Coming in a distant second under the non-liability general insurance business were Britam and AAR which reported 96,500 and 96,279 claims paid respectively over the three-month period.
Under the liability business, Geminia Insurance recorded 1,550 claims paid out followed by GA Insurance (1,000) and Britam (981).
Insurance claims paid under long-term insurance business saw Britam pay out 24,000 claims, ICEA Lion (19,000) and Jubilee Health (19,000).
Insurance claims in the fourth quarter of 2021 dropped by 4 percent to hit 2 million claims compared to the previous quarter which had 2.1 million claims.
The Insurance Regulatory Authority (IRA) October – December 2021 Claims report indicates that underwriters reported 1,932,047 general non – liability claims from 2,024,073 reported in the previous quarter while general liability claims went up by 11 percent to 16, 665 up from 14,989, in Q3 2021.
The long-term insurance business dropped by 2 percent in the number of claims reported to 93, 231 compared to 95,251 claims reported in the quarter ending September 2021.