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Claims Settlement for Long Term Insurance Business Improve in Q4 2020

by kenya-tribune
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A report by the Insurance Regulatory Authority (IRA) shows that claims settlement in the long term Insurance business in Kenya improved in the 4th quarter of 2020 compared to the 3rd quarter.

The claims payment ratio, which is the number of claims paid in relation to the total number of claims payable, improved to 73.1% in the last quarter of 2020, from 72.3% in the third quarter of 2020 for the long-term insurance business.

For the general insurance liability claims and general insurance non-liability claims, the claims settlement ratio remained unchanged in the quarter under review at 8.4% and 70.3% respectively.

Kenyan companies with the highest claim payment ratio in the 4th quarter of 2020 for the long-term insurance business were, GA Life Assurance at 99.7%, CAPEX Life Assurance at 96.7%, the Kenya Alliance Insurance at 92.9%, Britam Life Assurance at 87.7%, UAP Life Assurance at 86.4% and ICEA LION Life Assurance at 86%. The industry average claim settlement ratio for the long term insurance business stood at 73.1% in the period under review.

In the general insurance business, the companies with the highest claim payment ratio for the liability claims, also referred to as third-party claims, were; Madison Insurance, Kenya Alliance Insurance, CIC General Insurance, ICEA LION General Insurance, and Sanlam General Insurance. For the non-liability claims category, also referred to as policyholder claims, Madison Insurance, Sanlam General Insurance, AAR Insurance, Jubilee Health Insurance, and Allianz Insurance had the highest claim payment ratio.

According to the IRA report, 10,223 third-party claims under the general insurance business were settled in the last quarter of 2020, while 108,396 third-party claims were outstanding at the end of that period. In the long-term insurance sector, 82,846 claims were settled in the period under review, and the number of outstanding claims stood at 29,965.

Also read: Deloitte Warns of Negative Effects of Covid19 on Insurance Business

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