By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Newsunplug KenyaNewsunplug KenyaNewsunplug Kenya
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Reading: In the fourth quarter of 2023, the insurance sector expands by 16.7 percent.
Share
Notification Show More
Font ResizerAa
Newsunplug KenyaNewsunplug Kenya
Font ResizerAa
  • News
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
  • News
    • Metro
    • Politics
    • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Tech
  • Spotify
Have an existing account? Sign In
Follow US
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Newsunplug Kenya > Blog > Business > In the fourth quarter of 2023, the insurance sector expands by 16.7 percent.
Business

In the fourth quarter of 2023, the insurance sector expands by 16.7 percent.

Ivy Irungu
Last updated: May 28, 2024 6:29 am
Ivy Irungu 1 year ago
Share
SHARE

Kenya’s insurance sector experienced significant growth in the fourth quarter of 2023, with the Gross Written Premium (GWP) increasing by 16.7 percent to Sh361.4 billion, up from Sh309.8 billion in the same period the previous year.

According to the Insurance Regulatory Authority (IRA) report for January to December 2023, the general insurance business remained the primary contributor to the industry’s premium, accounting for 52.9 percent of the total premium.

Within the general insurance business, Motor and Medical insurance classes made up 63.1 percent of the gross premium income. The review period also saw a rise in investment income, which increased by 14.8 percent to Sh54.65 billion by the end of the quarter.

The highest paid claims were recorded in the Medical, Motor Private, and Motor Commercial insurance classes.

By the end of Q4 2023, the total Gross Premium Income (GPI) reported under long-term insurance business reached Sh170.02 billion, marking a significant growth of 20.7 percent. This was a notable increase compared to the 13.8 percent growth observed in Q4 2022, when the GPI stood at Sh140.84 billion.

READ MORE  Experts say the budget deficit is expected to exceed Sh600 billion

Kenya’s insurance sector witnessed substantial growth in Q4 2023, with total investments in the long-term insurance business reaching Sh695.42 billion, a 14.9 percent increase from the previous year.

The Deposit Administration and Life Assurance classes were major contributors to this growth, accounting for 37.1 percent and 22.7 percent of the Gross Premium Income (GPI), respectively.

A significant portion of these investments was allocated to Kenyan government securities, such as treasury bills and bonds, which remained a popular choice for long-term insurers. These securities accounted for 75.3 percent (Sh523.51 billion) of the total investments in the long-term insurance sector.

During Q4 2023, the total general insurance premiums amounted to Sh191.34 billion. The medical and motor insurance classes continued to lead the general insurance business premium, contributing 34.7 percent and 28.8 percent, respectively.

However, the Engineering class saw a decline in premiums, dropping by 12.1 percent. Additionally, the reinsurance business volume decreased by 4.7 percent, from Sh34.31 billion in 2022 to Sh32.77 billion in 2023.

The Insurance Fraud Investigation Unit (IFIU) reported a total of 56 suspected insurance fraud cases in Q4 2023. The most significant increase was in the issuance of fake motor vehicle insurance certificates, which rose from zero cases in Q4 2022 to 10 cases in Q4 2023.

READ MORE  Tech project deliberates on empowering girls in Kenya.

Fraudulent motor accident/electrocution injury claims also increased from eight to 12 cases. Other notable fraud cases included theft by agents, which increased from six to nine cases, and fraudulent funeral/death/medical claims, which rose from three to four cases.

Conversely, cases of obtaining money by false pretenses decreased from six to two. New types of fraud, such as impersonating IRA officials and fraudulent last expenses, were also reported.

According to the IRA report, the insurance industry’s exposure to capital market investments, specifically quoted shares, has been declining. It fell from 2.8 percent in Q4 2022 to 2 percent in Q4 2023.

You Might Also Like

Cut base rate on low inflation, central bank is asked to do

Acorn will retire its Sh5.7 billion green bond before it matures

Apple discontinues its Pay Later financing plan

Blacklisted mobile loan accounts hit 19.97 million

Asset financiers are fined by the Competition Authority. Mogo Ksh10.8M

Share This Article
Facebook Twitter Email Print
Previous Article ‘It’s natural for him to win’ — Roberto Carlos on favourite player for Ballon d’Or
Next Article The Pope used a vulgar Italian word to refer to LGBT people, according to Italian newspapers.
about us

We influence 20 million users and is the number one business and technology news network on the planet.

Recent Posts

  • One police officer shot dead, two injured in Nakuru gang attack
  • Homeless seek refuge at Madrid airport as rents soar
  • Jubilant PSG party into night with Champions League trophy
  • Two suspected criminals arrested in Kiambu
  • South African man arrested after Nairobi teen lured to Nairobi hotel via Tinder

Recent Comments

No comments to show.
Newsunplug KenyaNewsunplug Kenya
© Newsunplug Kenya. All Rights Reserved.
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?