The Insurance Regulatory Authority (IRA) has introduced a proposal to penalize insurers that delay claim settlements beyond 90 days after all documentation is submitted.
As outlined in its five-year strategic plan (2018–2022), the regulator emphasized measures to protect policyholders by implementing interest charges on delayed claims. This initiative addresses the sector's persistent low claim settlement ratio, attributed to insurers' delayed processing tactics.
The report stated that strategies include 'championing fair treatment of customers, ensuring timely claim settlements, and enhancing information disclosure.' IRA CEO Godfrey Kiptum highlighted plans to strengthen public education through insurance clinics, awareness campaigns, and community outreach programs.
The insurance sector's gross written premiums grew from Ksh 109 billion in 2013 to Ksh 207 billion in 2017, reflecting an annual average increase of 13%. The premium levy rose from Ksh 1.2 billion in 2013 to Ksh 1.8 billion by 2016/17.
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