Insurance Industry Paid Kes 47.5 Billion in claims between July and September 2023

By Phyllis MUCHOKI

Insurance industry paid claims worth KES 47.49 billion in the third quarter of 2023, representing a 11.9 %  increase compared to Q2, 2023 where they paid KES 42.43 billion.

The Insurance Regulatory Authority (IRA) July – September  2023 Claims  report  indicates the industry  paid about 2.1 million claims, a 17.5 % increase compared to the same period in the previous year that had 1.80 million claims paid.

During the quarter, General liability and non-liability claims paid were 14,321 claims worth KES 5.25 billion  and 1,978,535 claims worth KES 18.36 billion.

Long-term insurers paid 119,582 claims worth KES 23.88 billion in Q3 2023. Overall insurance claims in the third quarter of 2023 hit over 3.36 million.

General liability claims were 162,829, amounting to KES 38.29 billion an increase in number but decrease in amount from  158,747 claims amounting to KES 38.51 billion reported in Q2 2023 while 3,044,402 claims amounting to KES 57.54 billion were reported for general non liability claims, an increase in number from 2,848,970 but decrease in amount from  KES 58.34 billion reported in Q2 2023.

In the long – term insurance business, underwriters reported 156,590 claims amounting to KES 33.45 billion an increase in both number and amount from 144,056 claims amounting to KES 30.18 billion reported in Q2 2023.

“In Q3 2023, the claims payment ratio for general liability claims decreased slightly  to 8.80% with respect to number while it increased to 13.72% with regard to amount (Q2 2023: 8.87% and 12.62% respectively).

The claims payment ratio for general non-liability claims decreased to 64.99% in respect of numbers but increased to  31.92% in respect of amounts in Q3 2023 from 67.92% and 29.70% in Q2 2023 respectively.” the report states.

The claims payment ratio for the long-term insurance business in the quarter, however, increased to 76.37% in terms of numbers and increased to 71.40% in terms of amounts compared to  75.27% and 67.05% observed in Q2 2023.

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.