• Kenya’s Insurance industry premiums increased by 11.4 percent to hit $2.379 billion in the third quarter of (Q3) 2022 from $2.13 billion in Q3 2021
• The growth is attributed to the continued economic recovery from the negative effect of COVID-19 in 2020 and 2021.
• Long term insurance business premiums stood at $1.0349 billion accounting for 43.5 percent of the total industry premium while general business premiums amounted to $1.34 billion (56.5 percent).

Kenya’s Insurance industry premiums increased by 11.4 percent to hit Ksh 293 billion ($2.379b) in the third quarter of (Q3) 2022 from Ksh 263 billion ($2.13b) in Q3 2021, latest data from the Insurance Regulatory Authority (IRA)) indicates. 

The insurance industry report for the period July – September 2022 attributes the growth to the continued economic recovery from the negative effect of COVID-19 in 2020 and 2021.

Long term insurance business premiums stood at $1.0349 billion  accounting for 43.5 percent of the total industry premium while general business premiums amounted to $1.34 billion (56.5 percent).

Under general insurance business, fire industrial gross premium income had the highest growth of 30.9 percent, from $115 million reported in Q3 2021 to ksh $151.2 billion reported in Q3 2022. Personal accident had the largest decline from $21.2 million recorded in Q3 2021 to $20.2 million in Q3 2022.

The underwriting performance of the general insurance continued to make an improvement recording a loss of $22.6 million from a loss of $41.3 million reported in Q3 2021.

Workmen’s compensation class made the highest underwriting profit of $24.8 million while motor private, motor commercial and personal accident classes of general insurance business incurred the highest underwriting losses of $23.3 million, $17.5 million and $8.68 million respectively.

“The total Gross Premium Income (GPI) reported under long term insurance business by the end of Q3 2022 amounted to $10 million (Q3 2021: 92.12 billion) representing a growth of 12.3% compared to a growth of 24.0 percent  in Q3 2021,” the report indicates. 

Deposit Administration and Life Assurance classes remained the biggest contributors to the long-term insurance business GPI accounting for 36.3 percent and 25.2 percent respectively.

On the other hand, the reinsurers’ business volume increased by 29.1 percent to $ 280 million in Q3 2022 (Q3 2021: $217.3 million) improving the underwriting results significantly from a loss of $2.45 million in Q3 2021 to a profit of $126 million in Q3 2022.

Industry Profits 

The insurance industry profit before tax hit $906 million, a 3 percent  increase compared to $87.9 million recorded in Q3,2021

Asset base grew by 9.8 percent to $9.18 million at end of Q3 2022 from the $8.36 million held at end of Q3 2021. A significant portion of total assets $8.05 million (85.6 percent) were held in income generating investments.

The report includes data for all the insurers and reinsurers regulated by the Authority except for African Merchant Assurance Company Limited, The Monarch Insurance Company Limited (General), Xplico Insurance Company Limited, and Kuscco Mutual Assurance Limited due to non-compliance with submission requirements. 

According to the report, IRA registered 451 complaints in Q3 2022. General insurance business accounted for 83.1 percent of the complaints whereas 16.9 percent were made against long-term insurers. Over the period under review 118 (31.5 percent) complaints against general insurers were resolved while 27 (35.5 percent) complaints against long-term insurers were resolved. 

The complaints are reported to the Authority through various channels which include post, email, telephone calls via IRA toll-free line, walk-ins, and social media such as Twitter and Facebook.

“One of the core functions of the Authority, as provided for in the Insurance Act, is to protect the interests of insurance policyholders and beneficiaries in insurance contracts. To this end, the Authority receives and handles complaints lodged against insurers by policyholders and beneficiaries,” the Authority states.

 The Insurance Regulatory Authority is a State Corporation established under the Insurance Act, Cap 487 of the Laws of Kenya with the mandate to regulate, supervise and promote development of the insurance industry in Kenya.

The Authority executes its mandate through a combination of legal and regulatory measures aimed at not only ensuring industry stability and market confidence but also spurring growth.

The publication of any summary of an insurer’s return in a report does not necessarily mean that the returns so summarized have satisfied all the requirements of the Insurance Act, Cap 487, or that the Authority approves the accuracy of the contents of the returns.  Where necessary, figures have been adjusted to eliminate errors in totals due to rounding off.