Homes pay Sh38bn for non-existent insurance policies

IRA
IRA
Photo credit: File

What you need to know:

  • The delays have resulted from brokers, agents and banks failing to wire premiums to insurance firms covering the risks.
  • Latest data from the Insurance Regulatory Authority (IRA) shows outstanding premiums increased 6.7 percent to Sh38.1 billion last year as the coronavirus pandemic affected cash flows of insurance intermediaries.
  • Insurance firms have also been blamed for delaying payments to reinsurance firms, who assist in settling a share of larger and riskier claims.

Businesses, individuals and households have spent Sh38.1 billion on non-existent insurance covers following delays in remitting premiums to insurers, exposing the customers to heavy losses when they make compensation claims.

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