× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Motor, medical segments hurting sector

By Issack Awal Mohammed | October 6th 2019

Use of technology could enable insurers to substantially cut their losses in the motor and medical businesses, analysts say.

A new report shows that by deepening the use of technology, the industry can cut losses in the two areas, which have traditionally reported high claims, with a high number of them being fraudulent.

The report by Deloitte noted that last year, the industry grappled with high claims and losses in the motor and medical insurance segments that have become its Achilles heel. The motor private segment of the industry reported 70 per cent claims as medical insurance posted 60 per cent claims. The high claims in the two segments resulted in reduced profits for insurers.

“Motor private and medical business classes are the largest classes. However, they are also among the most loss-making businesses,” read the insurance outlook report 2019/2020 in part.

Rebecca Muriuki, the actuarial and insurance solutions leader at Deloitte said insurance firms in the country don’t have a risk-based approach when it comes to the ‘loss leading’ policy, with the majority of Kenyans treating insurance as a luxury, not a necessity.

“Policies with “bad risks” which should have been priced higher than the standard market rate are priced incorrectly, resulting in underwriting losses,” she said.

Share this story
Tough conditions make power rebate plan hard to execute
At the moment, about 40 per cent of the 3,900 commercial and industrial consumers are enjoying the off-peak hours tariff.
Dog walking becomes the newest hustle in town
Dog walking is now a status symbol. Owning a pet is cool. I nowadays meet lots of Kenyans and foreigners walking their dogs and some running.