Insurance customers tap more policy loans on pandemic woes

The surrender value of the life insurance policies is held as collateral for loans on life policies. FILE | NMG

Insurance customers last year tapped more loans on their life insurance policies and slowed down on repayments as they sought to avoid surrendering their covers to raise funds.

Data on four out of the five insurers listed on the Nairobi Securities Exchange show that outstanding policy loans—usually tapped against life insurance covers— grew by 22 percent to Sh3.89 billion.

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Note: The results are not exact but very close to the actual.