- The most recent data from the Insurance Regulatory Authority (IRA) shows that premiums paid to the insurer fell from 566 million to 243 million shillings, making Xplico the biggest loser in the sector during the year. third trimester.
- Other insurance companies that lost market share include Kenya Orient, Resolution, Heritage and Fidelity.
- Directline controls the matatu insurance industry with a collection of Sh2.2 billion in premiums, followed by Sanlam with Sh301 million and GA insurance with Sh240 million.
Matatu owners left Xplico Insurance, reducing its market share in the utility vehicle industry by nearly two-thirds, from 21.9 percent to 7.5 percent in September last year.
The most recent data from the Insurance Regulatory Authority (IRA) shows that premiums paid to the insurer fell from 566 million to 243 million shillings, making Xplico the biggest loser in the sector during the year. third trimester.
Other insurance companies that lost market share include Kenya Orient, Resolution, Heritage and Fidelity.
The biggest winners from the Xplico drop were Directline Insurance, which now controls 69.6 percent of the market, and Sanlam Insurance, whose market share jumped from 3.7 percent to 9.3 percent.
Directline controls the matatu insurance industry with a collection of Sh2.2 billion in premiums, followed by Sanlam with Sh301 million and GA insurance with Sh240 million.
The company was also among the top five companies that received the most customer complaints according to the IRA, an indicator of customer dissatisfaction.
The regulator received 31 customer complaints from Africa Merchant, Monarch insurance and Resolution, 29 complaints from Xplico Insurance and 28 complaints from Kenya Orient.
The regulator receives complaints from clients through various channels including postal mail, email, telephone calls through the IRA’s toll-free lines, walk-ins and social networks such as Twitter and Facebook.
“The authority registered 467 complaints in the third quarter of 2021. The general insurance business accounted for 80.3 percent of the complaints, while 19.7 percent were filed against long-term insurers,” said CEO of IRA, Godfrey Kiptum.
The matatu sector recovered to the pre-Covid-19 era after industry-wide premiums rose to Sh3.2 billion in the nine months to September.
Premiums had plummeted from Sh3.4 billion in 2019 to Sh2.5 billion in 2020 at the height of the pandemic after the government imposed movement restrictions including night curfew, curbs in Nairobi, Mombasa and Mandera, which led to the suspension of some matatu operations.
The government also imposed capacity limits on public service vehicles which also drove out some players in the sector.
The lifting of the curfew has made the Matatus troops return to the roads and contract the compulsory insurance that the sector has lifted.
Although considered high risk, the sector appears to have managed to contain claims in 2021 as payouts to beneficiaries fell from 1.7bn to 1.2bn shillings, making the business profitable.
Public Service insurance providers made a profit of Sh257 million, a break from the rest of the motor vehicle insurance industry which reported technical losses.
Private motor vehicle insurers had a loss of Sh 4.8 billion, while commercial vehicle companies had a loss of Sh 2.7 billion.
The regulator said the losses were due to an increase in claims as accident cases rose following the lifting of curfews and restrictions on movement.
“This was primarily attributed to the high increase in loss ratios in the private and commercial auto insurance business classes due to the relaxation of restrictions that had been placed on travel due to the Covid-19 pandemic,” it said. Kiptum.
The movement restriction, lockdowns and night curfew in 2020 saw a reduction in car claims from Sh23.4 billion in 2019 to Sh22.1 billion.
Claims have climbed back up to Sh26.8 billion following the relaxation of Covid-19 movement restrictions.
Insurance companies were faced with a further increase in personal motor vehicle claims which rose from Sh11.5 billion to Sh14.9 billion.
Motor Commercial jumped from Sh10.6 billion to Sh11.8 billion.