Insurance companies underwriting life incurred claims worth 599.8 million shillings in 2020 while medical insurers paid 269 million shillings in COVID-19 claims, underlining the impact that the pandemic has had on insurance companies.
This is according to the latest report by the Insurance Regulatory Authority that also indicates that December 2020 was the worst month for insurers after they paid claims worth 138 million shillings for group life holders.
The latest data from the Insurance Regulatory Authority indicates that firms offering life insurance were the most affected by the Covid-19 pandemic.
The report indicates that insurers offering life covers processed 599.8 million shillings worth of claims with group life the highest at Ksh368.6 million shillings.
The insurers were worst hit by claims in December 2020 with underwriters processing COVID-19 related claims worth 138 million shillings.
This was three times higher than claims in July that steadily rose to a peak in December. October saw the highest claims with firms paying out Ksh75 million shillings to policyholders while July was the second-highest at Ksh66 million shillings.
In the last three months of 2020, IRA says insurers offering life covers paid 381 million shillings in COVID-19 related claims.
In 2020, medical underwriters paid out 269 million shillings to policyholders due to Covid-19 related claims. In general insurance, October registered increased claims payments with medical underwriters paying out 128.4 million shillings, while July recorded the least amount at 48.7 million shillings.
The insurance industry also witnessed massive policy cancellations with motor private leading in cancellations as 36,572 policies were cancelled.
Motor commercial had the second-highest cancellations registering 11,663 cancellations of policies. Overall, IRA says the cancellation rate in the general insurance business stood at 9 per cent while there was a 4 per cent lapse rate in the life business.
The regulator however says all is not gloom and doom for the insurance industry which it says is on upward trajectory.
The authority has been pursuing a range of regulatory and supervisory measures to provide operational relief to insurers in the wake of the pandemic.