Xplico insuarance has recorded the highest number of client complaints in six month to June.
According to the Insurance Regulatory Authority (IRA) quarterly report, Xplico had 43 client complaints.
Other insuarance company that had client complaints include; Resolution which had 30 complaints, Trident had 25 complaints and Corporate had 26 client complaints.
“The Authority registered 459 complaints in second quarter of 2021. General insurance business accounted for 75 per cent of the complaints whereas 25 per cent were made against long term insurers,” read IRA report.
“Over the period 104 (30 per cent) complaints against general insurers were resolved while 59 (51 per cent) complaints against long term insurers were resolved.”
On insuarance fraud cases, sixteen cases were reported to the Insurance Fraud Investigation Unit (IFIU).
The number of fraud cases reported were 8 in April, 6 in May and 2 in June.
The nature of cases included; fraudulent motor accident (Injury) claims which were 3, fraudulent medical claims (2), premium misappropriation (2), suspected client financial fraud (2), theft/stealing by agents (1), double issuance of insurance certificate (1), forgery of insurance certificate (1), complaint against advocate (1), loss of insurance certificate (1), forgery of motor vehicle sticker (1) and obtaining money by false pretense (1).
In the second quater, the premium reported by the long-term insurers amounted to Sh58.66 billion, a growth of 22.6 per cent compared to a growth of 8.2 per cent the previous year.
The long-term insurers’ asset base grew by 13.5 per cent to Sh533.43 billion
and largely composed of income generating investments of Sh493.78 billion.
Of the total assets, 10.2 per cent (Sh54.57 billion) was funded through shareholders’
equity.
General insurance premiums amounted to Sh85.36 billion.
“The general insurance business underwriters incurred claims amounting to Sh32.38 billion as at end of Q2 2021. The claims incurred loss ratio was 66.8 per cent in
the quarter under review compared to 61.6 per cent in Q2 2020,” read the report.
According to the regulator, this was mainly attributed to increase in loss ratios which may be due to increase economic activities after relaxation of government
restrictions instituted early year 2020 on travel and public gatherings aimed at
controlling the spread COVID-19 pandemic.
The total net premium income reported by long term reinsurance companies in the second quarter was Sh1.50 billion compared to Sh1.52 billion reported in second quarter 2020 representing a marginal decrease of 0.9 per cent.
Group Life contributed 91.5 per cent of the total net premium income recorded in the period under review.
The general reinsurers reported an increase in net premium income of 13.4 per cent
from Sh10.73 billion reported in 2020 to Sh12.17 billion in 2021.
The general reinsurers incurred claims amounting to Sh7.04 billion and direct
expenses (commissions and management expenses) of Sh4.85 billion.
The resultant was an underwriting loss of Sh510.64 million and operating profit of
Sh939.37 million.
