The Insurance Regulatory Authority (IRA) has said that a total of 87,669 insurance policies were canceled as a result of Covid-19.
The Insurance Regulatory Authority (IRA) has said that a total of 87,669 insurance policies were cancelled as a result of Covid-19. The regulator says the pandemic has had a huge impact on the insurance sector as the economy continues to be hit.
During the period, the motor private insurance sector had the highest number of cancellations with a total of 36,572 policies. The motor commercial was the second cancelled policy with 11,663.
According to IRA, motor insurance has the hard-hit with the Covid-19 pandemic because the government restricted the movement of people to cut down on the spread of the virus.
69,263 policies from the life insurance lapsed. Life assurance had the highest number of lapses with a total of 55,687. At the same time, group credit was second in terms of lapses with a total of 12,608 policies. Overall, life assurance was highly affected.
As a result of Covid-19, general insurance companies incurred 270 million shillings that were paid as claims. Life insurance incurred 599.8 million shillings. Group life insurance companies incurred 368 million shillings. Medical business hit by Covid-19 led to insurance companies incurring 269 million shillings.