The General Insurance market reported claims incurred amounting to Ksh70.14 billion during the fourth quarter of 2021.
This was an increase of 22.3% from Ksh57.36 billion reported in the fourth quarter of the previous year. The claims incurred loss ratio was 68.8% in the quarter under review compared to 63.6% in Q4 2020
Insurance claims attributed to motor classes business was 50.5% of total claims incurred compared to their contribution of 33.8% of the total premiums underwritten under general insurance business.
According to IRA’s 2021 4th quarter report, the high premium volume classes of general insurance business contributed the largest proportions of incurred claims; medical (38.5 %), motor private (27.7 %) and motor commercial (22.8 %).
During the period under review, the claims paid increased by 18.1% to Ksh64 billion compared to Ksh54.19 billion paid in Q4 2020.
The report also states that general insurance business underwriting results posted a loss of Sh6.34 billion in Q4 202 compared to Sh. 1.18 billion which was reported at the same time in 2020.
The increase in underwriting losses is mainly attributed to an increase in underwriting losses in motor private and motor commercial classes of insurance business due to relaxation of restrictions that had been imposed on travel due to the COVID-19 pandemic in 2020.
During the period, general insurance premiums amounted to Sh152.35 billion.
Medical and motor insurance classes maintained a leading position in terms of contribution in general insurance business premium at 31% and 33.8% respectively.
General insurance business remains the largest contributor to industry insurance premium contributing 55.2 % of the total premium. Motor insurance and medical insurance classes of business account for 64.8% of the gross premium income under the general insurance business.