NAIROBI, Kenya, July 20 – Insurance Industry gross premium income grew by 14.8 percent in the first three months of the year, rising to Sh104.5 billion compared to Sh88.4 billion in the same quarter last year.
Insurance Regulatory Authority (IRA) performance statistics for the first quarter of the year attribute the growth to the continued economic recovery from the negative effect of Covid-19 in 2020 and 2021.
The income has been rising for the past three years, rising from a five-year low of Sh79.3 billion in Q1, 2021.
Long-term insurance business premiums amounted to Sh38.97 billion, accounting for 38.4 percent of the total industry premium, while general business premiums amounted to Sh62.52 billion (61.6 percent).
This is an improvement compared to the Sh34.5 billion registered in a similar period last year, which represented 18.6 percent of sector premiums.
The amount was lower, at Sh30.7 billion, or 12.1 percent of total industry earnings in a similar quarter in 2021.
Investment income (revenue account and profit and loss account) under the long-term insurance business increased to Sh14.38 billion during the quarter under review, compared to Sh9 billion.
The general insurance business recorded an investment income of Sh2.98 billion during the period, compared to Sh2.5 billion last year.
Under the general insurance business, workers compensation gross premium income had the highest growth of 64.1 percent, from Sh3.19 billion reported in Q1 2022 to Sh5.23 billion reported in Q1 2023.
Personal accidents had the largest decline, from Sh1.07 billion recorded in Q1 2022 to Sh972.67 million in Q1 2023.
The high premium volume classes of general insurance business contributed the largest proportions of incurred claims, that is, medical Sh8.72 billion (40.5 percent), motor commercial Sh5.29 billion (24.6 percent), and motor private Sh4.99 billion (23.2 percent).
Medical, motor private, and motor commercial continued to dominate claims, accounting for 40.9 percent (Sh8.25 billion), 24.9 percent (Sh5.02 billion), and 23.1 percent (Sh4.65 billion), respectively, of total industry paid claims under general insurance business.
