This archive report was first published on 2 January 2020.
On September 30, 2020, Directline Assurance, a leading insurance provider in Kenya, announced a significant improvement in its claims settlement record. According to the Insurance Regulatory Authority (IRA), the company's claims settlement ratio had risen to 8.6 percent in the three months to September, marking the best performance in four years.
This achievement comes despite ongoing management wrangles that have threatened the underwriter's operations. The company, which primarily covers public service vehicles, private, and commercial motor vehicles, has faced challenges in settling claims in a timely manner.
As of September 30, 2020, Directline had 14,300 outstanding claims, with 1,353 new claims received during the quarter. The company managed to settle 1,353 claims, a significant improvement from the 1,092 and 1,098 claims settled in the first and second quarters, respectively.
While Directline's settlement ratio of 8.6 percent was below the industry average of 10 percent, achieved by 37 general insurers, the company's performance in claims payment ratio for general liability claims increased from 8.2 percent in the second quarter.
