Insurance premium grew by 11.4 percent to Sh237.9 billion in quarter-three last year compared to a similar period in 2021, buoyed by an economic recovery caused by the Covid-19 pandemic.
Latest data from the Insurance Regulatory Authority (IRA) shows that premiums grew from Sh213.53 billion between July-September last year to Sh237.9 billion during a similar period last year.
The growth at a time when businesses were emerging from an economic impact caused by the coronavirus that ravaged thousands of businesses through shutdowns as well as low customer traffic.
Under general insurance business, fire industrial gross premium income recorded the highest growth of 30.9 percent that grew from Sh11.55 billion to Sh15.12 billion in the same period.Personal accident recorded largest decline from Sh2.12 billion to Sh2.02 billion.
“The underwriting performance of the general insurance continued to make an improvement recording a loss of KES 2.26 billion from a loss of KES 4.13 billion reported in Q3 2021,” the report said.
Workmen’s compensation class made the highest underwriting profit of Sh2.48 billion while motor private, motor commercial and personal accident classes of general insurance business incurred the highest underwriting losses of Sh2.89 billion, Sh1.75 billion and Sh868.74 million respectively.
“The total Gross Premium Income (GPI) reported under long term insurance business by the end of Q3 2022 amounted to KES 103.49 billion (Q3 2021: 92.12 billion) representing a growth of 12.3% compared to a growth of 24.0% in Q3 2021,” the report indicates.
The insurance industry profit before tax hit Sh9.06 billion, a 3 percent increase compared to Sh8.79 billion recorded in Q3, 2021“Asset base grew by 9.8% to KES 918.02 billion at end of Q3 2022 from the KES 836.11billion held at end of Q3 2021. A significant portion of total assets KES 805.42 billion (85.6%) were held in income generating investments.”
Long term insurance business premiums stood at Sh103.49 billion accounting for 43.5 percent of the total industry premium while general business premiums amounted to Sh134.41 billion (56.5 percent).