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Insurance claim payouts continue to soar 

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Jubilee health and Britam general insurance firms accounted for the largest claim payments by individual firms in three months to June 2022 – more than half of 1.9million total claims the industry paid in that quarter.

Figures by the insurance regulatory authority (IRA) for the 2022 quarter period, show that that two firms paid a combined 1,296,175 worth of claims, with jubilee health making the largest claims at 1,140,776 compared to Britam’s 255,399 claim compensation.

Madison Insurance company and AAR Insurance Kenya ltd paid 153, 765 and 122,730 in claim payouts respectively in what the industry says was a 6.3 percent increase for the total claims paid in the period under review in comparison to what the sector registered in a similar period last year.

An insurance claim is a formal request for payment made by someone to their policy provider, often made after an incident occurs that’s covered by the policy. Such payments by insurance companies are habitually used to replace or repair property or pay for health care costs related to an injury.

On the other hand, an insurance premium – an amount paid by any person or business for availing of an insurance policy, is a transfer from the customer to the company, while the claim process is a customer’s attempt to get a reimbursement from the company.

Th IRA’s 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 percent compared to 6.9 percent in the previous quarter, while claims payment ratio for general non-liability claims decreased to 75.2 percent during the period from 77.1 percent in the previous quarter.

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

“In Q2 2022, the proportion of declined general liability claims increased to 0.06 percent from 0.02 percent recorded in Q1 2022. The proportion of declined general non-liability claims remained constant at 0.03 percent in Q2 2022 and Q1 2022. In addition, the proportion of declined long-term business claims in Q2 2022 decreased to 0.04 percent from 0.06 percent 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 percent compared to 2.1 percent observed in the quarter ended March 2022.

The proportion of general business non-liability claims closed as no claims increased to 0.7 percent in Q2 2022 from 0.6 percent in the last quarter.

Last quarter, the industry paid claims worth Sh36.77 billion.



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