NAIROBI, Kenya, Mar 19 – Insurance premium growth slowed down in 2017 to grow by 6.6 percent compared to an annual growth of 12.3 percent in a similar period of 2016.
According to a new report by the Insurance Regulatory Authority, insurance premium stood at Sh207.68 billion by the end of the fourth quarter of 2017 with 60 per cent of the industry business comprising general insurance premium.
The fourth quarter statistics report says insurance premium growth continues to be driven by the higher growth of 13.6 per cent in the long-term insurance business segment compared to a growth of 2.5 per cent in the general insurance business segment.
“Medical insurance class of business recorded the highest premiums followed by motor commercial and then motor private,” the report states.
In the period under review, claims incurred by general insurers hit Sh54.86 billion in the fourth quarter of 2017, an increase of 2.2 per cent compared to Sh53.7 billion incurred during the previous year.
Net spending on commissions decreased marginally from Sh12.32 billion spent in commissions in 2016 to Sh12.18 billion in the period under review.
The industry asset base grew by 11.3 per cent to Sh584.84 billion as at the end of December 2017 from the Sh525.25 billion held as at the end of December 2016.
Investments by the industry insurers and reinsurers grew by 13 per cent from Sh423.31 billion reported in the fourth quarter of 2016 to Sh478.20 billion in 2017.
Asset classes with the highest investment proportions were; government securities 53.7 per cent, investment property 15.9 per cent, equities 9.4 per cent and term deposits 8.3 per cent.