Premiums increase by 13pc to June 2022
Kenya’s insurance gross premiums grew by 13.2 percent in the second quarter of 2022 to Sh163.06 billion from Sh144.02 billion posted in a similar period last year.
The Insurance Regulatory Authority (IRA) attributed the growth to continued economic recovery from COVID-19 shocks.
“The second quarter (Q2) statistics attributes the growth to the continued economic recovery from the negative effect of COVID-19 in 2020 and 2021,” reads the report. Statistics for the quarter ended June further shows that general insurance premiums surged by 8.2 per cent to Sh 92.40 billion compared to Sh85.36 billion the industry reported in a similar quarter last year.
Medical and motor insurance classes contributed the most in general insurance business premium at 34.5 per cent and 28.1 per cent respectively.
Only workmen’s compensation and miscellaneous classes saw premiums dip by 10.4 per cent and 7.9 per cent respectively.
Further, IRA noted that the general insurance business remained the largest contributor to industry insurance premium contributing 56.7 percent of the total premium.
Motor insurance and medical insurance classes of business account for 62.5 per cent of the gross premium income under the general insurance business.
“The general insurance business underwriters incurred claims amounting to Sh37.09 billion as at end of Q2 2022. The claims incurred loss ratio was 68.1 percent in the quarter under review compared to 66.8 percent in Q2 2021,” the report indicates.
Insurers also made substantive losses during the quarter, paying claims worth Sh 34.51 billion as opposed to Sh30.60 billion paid in the same quarter last year – representing an increase of 12.7 per cent.