In­sur­ers set­tle only 8pc claims in third quar­ter

Business Daily (Kenya) - - MONEY & MARKETS - Geoffrey Irungu [email protected]­tion­media.com

The in­sur­ance in­dus­try set­tled only 8.2 per cent of gen­eral busi­ness claims by third par­ties in quar­ter three with most of the claims re­main­ing out­stand­ing.

Long-term or life in­sur­ance had the high­est claims set­tle­ment ra­tio at 64.9 per cent, said a re­port by then In­sur­ance Reg­u­la­tory Author­ity (IRA) .

How­ever, the IRA fig­ures did not show the value of the claims, which ex­perts said would give a more com­plete pic­ture of the sit­u­a­tion.

A reg­u­la­tor source how­ever ar­gued that there has been a ten­dency for the in­dus­try to con­cen­trate on the amounts of money paid out and ig­nor­ing the number of claims made and set­tled and there­fore the lives af­fected, thus the need to re­lease the new fig­ures.

It was also noted claims were ac­cu­mu­lat­ing in num­bers yet set­tle­ment re­mained low es­pe­cially for third-party claims.

“This must be a new way of look­ing at claims, but they need to go fur­ther and give a more com­plete pic­ture. We need to see the amounts set­tled,” ar­gued Isaac Ng’aru, an in­sur­ance ex­pert.

For pol­icy holder’s claims, also re­ferred to by the IRA as non-li­a­bil­ity claims, the number set­tled stood at 64.7 per

For pol­icy holder’s claims, also re­ferred to by the IRA as non-li­a­bil­ity claims, the number set­tled stood at 64.7 per cent dur­ing the quart

cent dur­ing the quar­ter, an im­prove­ment from 60 per cent in the pre­vi­ous quar­ter.

The data fur­ther showed that li­a­bil­ity claims or those that came as third-party types stood at 7.2 per cent in the sec­ond quar­ter of the year, in­di­cat­ing that the third quar­ter had a slight im­prove­ment.

At the be­gin­ning of the quar­ter, some 132,200 third-party claims were out­stand­ing and by the end of the pe­riod, 135,448 claims were yet to be paid as more new claims came in than were set­tled.

Some 18,179 new claims were made in the pe­riod, but only 12,318 in to­tal were paid – with­out re­veal­ing the number that was paid out of the older claims and what was set­tled out of the claims specif­i­cally gen­er­ated from that quar­ter. Mr Ng’aru said the data should be im­proved to show the amount of claims set­tled dur­ing the quar­ter as a pro­por­tion of the to­tal that were specif­i­cally made.

Re­port says long-term life in­sur­ance had the high­est claims set­tle­ment ra­tio in Q3.

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