Industry

Insurance up 13pc as fraud dents private motor, medical business

Resolution Insurance CEO Peter Nduati. The insurer led the medical chart losses at Sh387 million. FILE PHOTO | NMG
Resolution Insurance CEO Peter Nduati. The insurer led the medical chart losses at Sh387 million. FILE PHOTO | NMG 

The insurance industry expanded by 13.4 per cent to hit gross premiums of Sh174 billion last year, but private motor cover made a blot on the sector as it deepened underwriting losses to Sh3.4 billion last year up from Sh3.36 billion in 2015.

The losses were attributed to rampant fraud by private vehicle owners.

According to an annual report released Thursday by the Association of Kenya Insurers (AKI), the rise in private motor insurance losses coincided with a 7.68 per cent growth of the segment to Sh20.4 billion gross written premiums.

Private motor insurance involves protection against accidental loss or damage to vehicles.