IRA releases list of insurers with most client complaints

Xplico, Resolution, Corporate and Trident insurance recorded more than a quarter of the 459 insurance complaints filed with the Insurance Regulatory Authority (IRA) in the six month to June.

The regulator has published a new report which includes the list of companies with customer complaints including issues resolved and those still pending.

In general insurance, Xplico had 43 client complaints, Resolution had 30 complaints while Trident had 25 customer issues according to the IRA quarterly report.

Corporate, which offers long term businesses, had 26 client complaints.

Over the period, 104 (30 per cent) complaints against general insurance firms were resolved while 59 (51 per cent) complaints against long term insurers were resolved.

“The Authority registered 459 complaints in second quarter of 2021. General insurance business accounted for 75 percent of the complaints whereas 25 percent were made against long term insurers,” IRA chief executive Godfrey Kiptum said in the report.

The regulator is trying to push for transparency in order to pressure insurers to proactively address client concerns.

Kenya’s insurance growth has been sluggish at 2.34 per cent of GDP with a huge reliance on mandatory transport and health covers partly blamed on the negative experience by customers.

There have been increased complaints against insurance companies from motor vehicle garages and loss accessors for delayed payments.

Client complaints may also have increased owing to regulators calling on all insurance companies to process Covid-19 related claims despite reluctance at the onset of the pandemic as insurers sought to avoid the claims.

Insurers had initially told clients they were not going to pay any claims related to the pandemic, but later softened their stance even as pressure mounted on underwriters worldwide to support clients.

The regulator also instructed medical insurers to foot Covid-19 vaccination bills for policy holders besides directing them to update their policies.

To avoid future arguments with customers, insurers are simplifying the wording of their contracts and stating openly what is covered or excluded in order to cultivate trust between them and their clients.

The Competition Authority of Kenya (CAK) has also developed template contracts for the insurance players to reduce disputes of unfair termination of contracts by insurers.

The draft contract will now be the reference point for both parties in case of disputes involving the authority, and is also expected to reduce incidents of abuse of power.

The insurance contracts targets inspectors, loss assessors, underwriters and agents.