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By Steve Umidha
Insurance industry paid claims worth Sh39.1billion in the first quarter of 2023, representing a 6 percent increase compared to a similar period last year when they paid Sh36.77 billion.
The Insurance Regulatory Authority (IRA) 2023 Claims report in three months to March this year indicates the industry paid about 2.4 million claims, a 14.2 percent increase compared to the same period previous year that had 2.1 million claims.
Paid claims mean actual payments by firms to the policy holder, net of recoveries, made to a health and medical services provider or reimbursed to an individual by a carrier, third party administrator, or excess loss or stop loss carrier.
The greater the number of claims filed, the greater the likelihood of a rate hike. File too many claims—especially in a very short amount of time—and the insurance company may not renew your policy. If the claim is based on the damage you caused, your rates will almost surely rise.
During the quarter General liability and non-liability claims paid were 10,619 claims worth KES4.59 billion and 1,600,327 claims worth Sh16.31 billion.
Long-term paid 875,980 claims worth KES 18.20 billion in the period under review. Overall Insurance claims in the first quarter of 2023 hit over 2. 6 million.
General liability claims were 16,128, a 49 percent drop from the same period previous year that had 32,148 claims. Non- liability claims hit 1,753,561 a 20 percent drop compared to 2,115, 834 in the same period last year.
In the long – term insurance business, underwriters reported 876,105 claims, a 774 percent increase compared to 100, 209 claims reported in the quarter ending March 2022.
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.