News Africa26 Oct 2020

Kenya:Insurance sector's 2019 underwriting losses are the worst in over 20 years

26 Oct 2020

The insurance sector in Kenya has recorded KES3.27bn ($30.05m) in underwriting losses, its worst in over two decades. The underwriting losses in 2018 stood at KES1.12bn.

Data released by the Association of Kenya Insurers (AKI) show that underwriting losses from insuring motor vehicles soared by 92.4% to KES7.35bn, with private vehicle insurance returning losses for the eighth year running.

Rising motor losses are posing a threat to the survival of insurers, as well as dragging down the sector that is struggling with fraud and price undercutting, reported Ventures Africa.

2019 was the fifth straight year of underwriting losses, with the the insurance sector last posting profit in 2014.

Based on AKI data, the losses incurred were a result of premium undercutting in an effort by insurers to maintain or increase market share.

Gross premium income in the insurance sector grew by 6.1% to KES229.50m in 2019 compared to the preceding year.


 

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