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Medical covers push general claims up to Sh43.06bn in Q3

Aviation had the least claims totalling Sh12.66 million. FILE PHOTO | NMG
Aviation had the least claims totalling Sh12.66 million. FILE PHOTO | NMG 

Claims incurred by general insurers in the third quarter of 2017 rose 3.2 per cent to Sh43.06 billion from Sh41.72 billion the previous year, with medical cover topping the list.

Latest data from the Insurance Regulatory Authority (IRA) shows medical claims hit Sh15.21 billion up from Sh13.44 billion.

Others were private motor cover (Sh11.13 billion), motor commercial (Sh7.03 billion), motor commercial PSV (Sh2.62 billion) and workmen’s compensation (Sh2.34 billion).

Aviation had the least claims totalling Sh12.66 million. Engineering accounted for Sh321.9 million, domestic fire (Sh250.08 million), industrial fire (Sh815.45 million), marine (Sh739.43 million), liability (Sh477.06 million), personal accident (Sh736.89 million), theft (Sh761.30 million) and miscellaneous (Sh581.1 million). The data also showed that net spending on commissions decreased by 6.5 per cent from Sh9.39 billion spent in the third quarter of 2016 to Sh8.74 billion in the same period in 2017.

“Commissions and management expense ratio under general insurance business were 7.4 per cent and 30.6 per cent respectively resulting to a combined ratio of 101.1 per cent,” IRA said.

Management expenses increased by 5.2 per cent to Sh29.82 billion in the first nine months of 2017 compared to Sh28.24 billion recorded during the same period in 2016.

During the same period investors equity funds grew by 8.2 per cent to stand at Sh145.67 billion from Sh134.60 billion reported in the same period in 2016.