The underwriting loss in the non-life insurance sector in Kenya, covering 14 classes of risks including medical, fire and motor, has increased by more than 50% to KES2.87bn ($27.9m) for 2018 compared to KES1.01 for 2017.
2018 was the fourth consecutive year for which general insurers in Kenya reported underwriting losses, reported the newspaper Star citing a report issued by the Association of Kenya Insurers.
AKI chief executive Tom Gichuhi said that the industry lacked an underwriting discipline. In the situation, some players ask for premiums that stood at a level below that which allows them to pay claims.
The best and the worst
Private motor insurance posted the highest underwriting loss of KES2.71bn for 2018, down from KES2.74 bn for 2017. This was followed by commercial motor insurance that saw a KES1.12bn underwriting loss and medical insurance that reported a KES1.08bn loss.
Marine insurance had the highest underwriting profit of KES439.20m for 2018. This class of business has started to normalise after the implementation of marine insurance laws in 2017, requiring importers to insure their marine business locally.