Insurance claims dropped by 4 % to hit 2 million claims in the fourth quarter of 2021 compared to the same period in 2020 which had 2.1 million claims.
The Insurance Regulatory Authority (IRA) October – December 2021 Claims report indicates that underwriters reported 1,932,047 general non-liability claims from 2,024, 073 reported in the previous quarter while general liability claims went up by 11 percent to 16, 665 up from 14,989, in Quarter 3 (Q3), 2021.
The long-term insurance business dropped by 2 percent in the number of claims reported to 93, 231 compared to 95,251 claims reported in the quarter ending September 2021. Paid claims during the period went up by 21 percent to 2.3 million compared to 1.9 million claims paid in the July-September 2021 period.
“In Q4 2021, the claims payment ratio for general liability claims decreased to 9.5 percent compared to Q3 2021 that stood at10.2 percent. The claims payment ratio for general non-liability claims increased to 77.1 percent in Q4 2021 from 64.6 percent reported in Q3 2021. The claims payment ratio for the long-term insurance business increased to 74.6 percent compared to 74.1 percent observed in the previous quarter,” the report states.
The period also witnessed a significant drop in the number of declined claims.
In the general insurance business, declined claims went down by 71 percent to 4,084 claims valued at Sh179.25 million from 14,713 claims valued at Sh242.32 million reported in Q3 2021.
On the other hand, the Long-term insurance business declined claims reduced by 38 percent from 160 claims valued at Sh152.46 million reported in Q3 2021 to 99 claims worth Sh109.48 million reported in Q4 2021.
“In Q4 2021, the proportion of declined general liability claims increased to 0.10 percent from 0.05 percent recorded in Q3 2021.The proportion of declined general non-liability claims decreased to 0.14 percent in Q4 2021 from 0.52 percent reported in Q3 2021,” the report elaborates.
In the same period, the proportion of general business liability claims closed as no claims increased to 2.8 percent compared to 2.5 percent observed in Q3 2021. The proportion of general business non-liability claims closed as no claims increased to 0.7 percent in Q4 2021 from 0.6 percent in Q3 2021. The proportion of long-term insurance business claims closed as no claims increased to 0.29 percent in Q4 2021 from 0.06 percent in Q3 2021.
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