Insurance industry pays 1.9m claims in Q2, 2022
Insurance industry paid 1.9 million claims in the second quarter of 2022, a 6.3 per cent increase compared to the same period last year, according to the sector regulator. Jubilee Health and Britam General Insurance, accounted for more than half the total claims.
The Insurance Regulatory Authority (IRA) report for the quarter shows that the two firms paid a combined 1,395,78 claims, with Jubilee Health making the largest claims at 1,140,776 compared to Britam’s 255,007 claim compensation.
Madison Insurance company and AAR Insurance Kenya Ltd on the other hand paid for 153,765 and 122,730 claims respectively during the period in review.
An insurance claim is a formal request for payment made by someone to their policy provider, often made after an incident occurs that’s covered by the policy. Such payments by insurance companies are habitually used to replace or repair property or pay for health care costs related to an injury. On the other hand, an insurance premium, an amount paid by any person or business for availing of an insurance policy, is a transfer from the customer to the company, while the claim process is a customer’s attempt to get a reimbursement from the company.
Th IRA’s April – June 2022 Claims report indicates that during the quarter General insurance business non-liability claims paid were 1,873,836 compared to 1,768,031 paid in the Q2, 2021 while General Insurance business liability claims paid were 10,709 compared to 11,633 paid same period last year.
On the other hand, 104, 574 long-term insurance business claims were paid during the quarter, compared to 90, 204 in second quarter of 2021.
Compared to the first quarter 2022, the claims payment ratio for general liability claims increased to 7.4 per cent compared to 6.9 per cent in the previous quarter, while claims payment ratio for general non-liability claims decreased to 75.2 per cent during the period from 77.1 per cent in the previous quarter.
The claims payment ratio for the long-term insurance business increased to 75.7 per cent compared to 70.6 per cent observed in the previous quarter.
“In Q2 2022, the proportion of declined general liability claims increased to 0.06 per cent from 0.02 per cent recorded in Q1 2022. The proportion of declined general non-liability claims remained constant at 0.03 percent in Q2 2022 and Q1 2022,” the report states in part.
In addition, the proportion of declined long-term business claims in second 2022 decreased to 0.04 per cent from 0.06 per cent recorded in first quarter 2022.
In the period under review the proportion of general business liability claims closed as no claims increased to 3.0 per cent compared to 2.1 per cent observed in the quarter ended March 2022.
The proportion of general business non-liability claims closed as no claims increased to 0.7 percent in Q2 2022 from 0.6 percent in the last quarter. Last quarter, the industry paid claims worth Sh36.77 billion.