8 November 2012

Kenya: Insurance Claims Up By 17 Percent

INSURANCE claims for general business rose by 17 per cent in the first half of 2012 to a total value of Sh14.4billion compared to Sh12.3 billion incurred last year, latest industry data shows.

The Insurance Regulatory Authority industry performance report released yesterday also shows a slight growth of 2 per cent in total claims and policy holders benefits paid out which totalled Sh7.88 billion from Sh7.72 over the same period in 2011.

Premiums netted over the first half of the year rose by 23.7 per cent to Sh55 billion from the Sh44 billion received in 2011. Out of the Sh55 billion, general business accounted for Sh36.6 billion while life insurance brought in 18.4 billion.

The reinsurance companies collected Sh4.73 billion in premiums translating to a growth of 26.8 per cent from Sh3.73 billion reported last year.

"The increase in premiums underwritten is attributed to a number of factors among them the growing understanding and appreciation of the importance of insurance among the populace," said the IRA in a statement.

The report released did not however indicate claims paid out under various classes of insurance during the period. Industry assets rose 17.2 per cent to a value of Sh232.29 billion from Sh206.06 billion.

Insurance firms spent 211.8 billion for investments which were made through such channels as buying government securities, property, shares and secured loans among others.

During the period under review, the IRA licensed a new firm called Continental Reinsurance bringing the number of locally incorporated reinsurance firms to three. The other two are Kenya Re and East African Reinsurance.

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