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Kenyan insurance firms paid out Sh152.23 billion in claims to customers last year, according to the Association of Kenya Insurers (AKI).

This represents 48.7 per cent of the gross written premium for the year 2022 and a 4.33 per cent increase compared to a payout of Sh144.3 billion a year before.

Motor insurance class saw the highest claim payouts at Sh37.6 billion followed by medical insurance at Sh32.4 billion, while life insurance claims and benefits paid out to customers stood at Sh76 billion.

Written premium

The gross written premium for the period grew by 13.5 per cent to stand at Sh312 billion compared to Sh275 billion in 2021. Non-Life or General Insurance contributed 55 per cent of the total gross premium whole Life Insurance contributed 45 per cent of the gross written premiums.

Gross premium for Motor (private) insurance grew by 4.86 per cent but it also recorded the highest loss of Sh4.0 billion, an improvement from a loss of Sh5.9 billion in 2021. Motor (commercial) insurance gross premium grew by 2.48 per cent but made a Sh2.97 billion loss compared to Sh2.99 billion in 2021, while medical insurance gross written premium grew by 15.22 per cent but the business recorded a Sh885 million loss.

“Despite the growth in business income, high management expenses and fraud continue to chip away at the profits in motor insurance, while medical insurance is plagued by fraud and high cost of healthcare,” reads in part the report released yesterday.

On the other hand, agriculture insurance gross written premium declined by 33 per cent to Sh518.83Million in 2022 compared to Sh776.83 million in 2021. 

The two sub-classes had differing performance. While crop insurance grew by 1.6 per cent to record Sh359.5 million, livestock insurance declined by 62.3 per cent to record Sh159.34 million. According to the report, the government pursues measures to ensure food security for the Kenyan population, agriculture insurance should form a key part of the initiatives.

“Agriculture insurance serves as a vital instrument for risk management, offering protection to both small and large-scale farmers against losses triggered by unfavorable weather conditions,” it noted.