Prudential Plc in September 2014 wholly acquired the life assurance arm of the collapsed Blue Shield Insurance for an undisclosed fee.
The average industry claim refusal ratio was 0.7 per cent for liability claims under general insurance and 0.4 per cent for non-liability claims, according to the IRA.
In some cases claim settlement as well as rejection ratios are used as indicators of the fidelity of an underwriter to settle claims in the event of a loss.
London-listed insurer Prudential Life rejected nearly one out of five life insurance claims in the first three months of the year, topping a list of underwriters who declined to pay mostly citing fraud and late filings.
Prudential Life’s claim rejection ratio—claims made by clients, but rejected—stood at 17.3 per cent in the quarter ending March 2017, followed by Old Mutual (3.8 per cent) and CIC Life (1.2 per cent), according to data from the Insurance Regulatory Authority (IRA).
The British underwriter rejected 745 claims out of the more than 4,255 claims under review in the quarter. Prudential settled 1,311 claims to post a claims settlement ratio of 30.5 per cent for the period.
In total, 933 life insurance claims were rejected in the three-month period for the entire industry, translating to a refusal ratio of 1.4 per cent, and a settlement ratio of 71.3 per cent.
The average industry claim refusal ratio was 0.7 per cent for liability claims under general insurance and 0.4 per cent for non-liability claims, according to the IRA.
Prudential Plc in September 2014 wholly acquired the life assurance arm of the collapsed Blue Shield Insurance for an undisclosed fee, to re-enter the Kenyan market it had exited in 1990.
“Rejected claims may be claims not payable under the insurance contract as per policy document and not necessarily because of fraud. The reason for rejection is case by case basis,” IRA told the Business Daily.
Classes such as medical, motor insurance and life covers are the biggest causalities of rejected claims mostly due to fraud, inflated bills and court cases. The IRA data did not provide the actual value of the claims rejected and what was settled.
In some cases claim settlement as well as rejection ratios are used as indicators of the fidelity of an underwriter to settle claims in the event of a loss.
In the general insurance category, Pacis rejected one in every 10 claims filed under non-liability claims.
Tausi had a refusal ratio of 8.5 per cent, according to IRA data.
Pacis rejected and closed 222 claims out of the 1,920 received. Tausi threw out 171 claim applications and paid out 30 claims out of the more than 2,000 lodged, official data shows.
