GA Insurance Will No Longer Insure Probox And Suzuki

The GA Insurance Limited has announced that moving forward it will not provide insurance services to at least 6 car models. This becomes the first insurance company in Kenya to make it clear the type of car model that it cannot cover.

The insurance company says the blacklisted vehicles are being misemployed, citing a challenge when settling claims involving them.

“After a comprehensive review of our motor private book, and the loss trends, we wish to communicate that there are vehicles whose usage has been misemployed and, therefore, have proven to be a challenge when settling claims,” said GA Insurance Business Development Manager Kenneth Kagira in a letter to all its business partners.

The 6 vehicle models blacklisted by the firm are Toyota Probox, Toyota Succeed, Toyota Sienta, Toyota Passo, Toyota Porte, and all Suzuki models with values below 1 million shillings.

Here is the statement from the insurance provider:

Insurance uptake in Kenya has remained low with the insurance penetration coming in at 2.2% as of December 2021, mainly attributable to the fact that insurance is still seen as a luxury and is mostly taken when it is necessary or a regulatory requirement.

“Despite the constrained business environment arising from elevated inflation and global supply chain constraints, the insurance sector showcased resilience and recorded a 13.2% growth in gross premiums to Kshs 163.1 bn in H1’2022, from Kshs 144.0 bn in H1’2021.

Loss and Expense Ratios across the sector eased, and consequently, the weighted average Combined Ratio improved to 126.8% in H1’2022, from 146.6% in H1’2021.

“We expect steady growth in premiums as underwriters leverage increased technology and digital distribution channels to target a larger reach. Claims are expected to grow in line with increased economic activity and insurers should leverage modern technology such as Artificial Intelligence to reduce insurance fraud and fictitious claims,” said Kevin Karobia, Investments Analyst at Cytonn Investments.

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