This archive report was first published on 19 June 2020.
As the COVID-19 pandemic spread globally, Kenyan insurance companies quickly adapted to the situation, informing their customers that claims relating to pandemics were not covered, whether expressly excluded in the policies or not.
This is in line with global practice, where pandemics are often excluded in medical and other related insurance policies due to their unpredictable nature and devastating impact.
When COVID-19 first emerged in China, it was initially considered an epidemic, but its rapid spread and global reach led the World Health Organisation (WHO) to declare it a pandemic, a situation the world had not faced in over a century.
The health and social effects, as well as the economic impact of COVID-19, have been unprecedented, making it challenging for risk analysts to predict and price the losses.
Despite this, Kenyan medical insurers have been settling COVID-19-related medical claims, with over Ksh12 million paid out as of the end of May 2020. Life insurance companies have also honoured claims worth Ksh108 million.
The insurance industry is working to develop innovative products for frontline healthcare workers, including a pioneering product offering medical insurance, life insurance, disability, and critical illness benefits.
As the industry continues to adapt to the pandemic, it is also leveraging technology to reach and serve customers online, a silver lining in this challenging time.
The pandemic has highlighted the need for the global insurance and reinsurance industry to develop products that can help the world deal with such risks in the future.
