Directline tops PSV insurance as high claims leave firms struggling

Directline tops PSV insurance as high claims leave firms struggling. [Courtesy]

Directline Assurance has continued with its dominance in insuring public service vehicles (PSVs) in the country with a market share of 43.41 per cent over the period to June 2026, according to new data by the Insurance Regulatory Authority (IRA) - despite growing turbulence in the sector.

The company is followed by Africa Merchant Assurance Company (Amaco) with a market share of 26.79 per cent and Definite Assurance with a 25.03 per cent share.

The IRA data shows Directline’s market share had, however, dropped sharply from 62 per cent in the first quarter, which was on account of a statistical anomaly in the first quarter when Definite Assurance’s numbers were not captured by the regulator.

During the second quarter of 2026, the broader motor vehicle commercial sector, which includes PSVs and other commercial vehicles, reported a Gross Premium Income of Sh18.43 billion, which translated to a 16.5 per cent annual increase compared to the Sh15.82 billion reported in the corresponding period of 2025.

Despite the growth, profitability within the segment continues to be heavily squeezed by the rising number of claims.

The wider motor commercial class recorded claims totalling Sh13.06 billion during the quarter, translating into a net incurred claims ratio (loss ratio) of 83.7 per cent. When combined with administrative and operational overheads, the segment’s combined ratio stood at 118.7 per cent.

“In Q2 2026, general insurance premiums amounted to Sh141.9 billion, with the Medical and Motor classes maintaining leading positions in terms of contribution to premium at 41.7 per cent and 26.4 per cent respectively,” said IRA, adding that despite the high volume, the two classes also accounted for the highest number of claims

“The high premium volume classes of general insurance business contributed the largest proportions of incurred claims: medical (44.1 per cent), motor private (22.4 per cent) and motor commercial (21.7 per cent). "

The motor classes of insurance business contributed 44.1 per cent of total claims incurred under general insurance business compared to their business contribution of 26.4 per cent of the total premium under general insurance business.

“Medical, Motor Private and Motor Commercial had the highest amounts of claims paid at 51.2 per cent, 20.8 per cent and 18.8 per cent respectively of total industry paid claims under general insurance business. The three classes jointly constituted 90.8 per cent of the total claims paid by general insurers.”

Insuring public service vehicles in Kenya has been shunned by many insurance companies, who deem it high risk due to the significantly high number of claims and operating expenses.

According to the IRA report, the insurance sector has maintained an upward trajectory, which has been on account of strong growth in gross direct premiums and expanding asset bases across both long-term and general insurance businesses.

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