NIGHTMARE: Motor vehicles along Uhuru Highway in Nairobi Image: /FILE Do you own or want to buy a motor vehicle in Kenya? You will have to dig deeper into your pockets to get covered, as underwriters adjust upwards-payable premium rates.
Some firms have increased rates by up to 50 per cent, communications to clients, seen by the Star show, with comprehensive insurance being the main focus affecting both new and renewal business.
A message seen by the Star shows a customer paying Sh47,714 will be required to pay Sh72,324 next year , a 51.6 per cent increase.
The premiums vary based on the value of the car with premium adjustments varying from one company to another.
The vehicle sum insured, payable in the case of an accident, has also been affected by the changes which cover both private, commercial, institutional vehicles, and tour vans.
"We note there is a notable continued deterioration in the performance of motor class business and thus to ensure that motor book is sustainable, we hereby issue revised rates applicable effective January 1 2022," Metropolitan Cannon Insurance says in a communique, as it outlines new rates.
While insurance companies have pegged the increase on a challenging business environment and losses, the majority of them remain profitable despite an increase in claims in the wake of the pandemic.
Some of the companies that recorded an increase in net profit this year include Jubilee, CIC Insurance, Britam and UAP Group.
Jubilee Holdings announced a profit of Sh4.5 billion in its half-year net earnings compared to Sh1.8 billion posted in a similar period last year.
The group said that the improvement in the performance was greatly influenced by gains from the sale of a majority stake in its former subsidiary, Jubilee General Insurance Limited to Germany’s Allianz.
CIC Insurance reported a Sh260 million net profit for the half-year period from a net loss of Sh335.5 million reported in the same period last year.The firm’s return to profitability was helped by improved performance in its underwriting business and higher investment income.Claims however increased seven per cent to Sh5.8 billion, partly due to a rise in benefit payouts in the life insurance business as a result of the pandemic.Britam Holdings on the other hand posted a Sh376.3 million net profit in the first half of 2021, marking a recovery from Sh1.63 billion net loss posted in a similar period last year.UAP Old Mutual Group recovered from a loss of Sh305 […]
