Insurers pay claims worth Sh7.5b in Q3
By Noel.Wandera, December 22, 2023
Insurance industry paid claims worth Sh7.49 billion in the third quarter of 2023, representing a 11.9 per cent increase compared to Q2, 2023 where they paid Sh42.43 billion.
The Insurance Regulatory Authority (IRA) July – September 2023 claims data shows that the industry paid about 2.1 million claims, which is a 17.5 per cent 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 Sh5.25 billion and 1,978,535 claims worth Sh18.36 billion.
Long term insurers
Long-term insurers paid 119,582 claims worth Sh3.88 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 Sh38.29 billion an increase in number but decrease in amount from 158,747 claims amounting to Sh38.51 billion reported in Q2 2023 while 3,044,402 claims amounting to Sh57.54 billion were reported for general non liability claims, an increase in number from 2,848,970 but decrease in amount from Sh58.34 billion reported in Q2 2023.
In the long – term insurance business, underwriters reported 156,590 claims amounting to Sh33.45 billion an increase in both number and amount from 144,056 claims amounting to Sh30.18 billion reported in Q2 2023.
“In Q3 2023, the claims payment ratio for general liability claims decreased slightly to 8.80 per cent with respect to number while it increased to 13.72 per cent with regard to amount (Q2 2023: 8.87 per cent and 12.62 per cent respectively).
The claims payment ratio for general non-liability claims decreased to 64.99 per cent in respect of numbers but increased to 31.92 per cent in respect of amounts in Q3 2023 from 67.92 per cent and 29.70 per cent 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 per cent in terms of numbers and increased to 71.40 per cent in terms of amounts compared to 75.27 per cent and 67.05 per cent observed in Q2 2023.