How Kenya's Insurance Sector is Tackling Flood Damage Claims

 

Over 300 CEOs from 84 countries gather in Nairobi to discuss insurance sector

  Jimmy Mbogo  By Jimmy Mbogo Speaking out Kenya's insurance industry, which is facing insurance claims worth Shs5 billion due to flood damage, has been settled. This was announced at the first Insurance CEO Forum currently taking place in the capital, where over 300 CEOs from 84 countries gathered to discuss the future of the insurance sector. 

This came after the Insurance Regulatory Authority (IRA) expressed concerns over  liquidity issues facing some insurers. 

Also read Royal Credit disputes insurance regulator allegations, confirms Direct Line Assurance has ceased operations Cell tower companies gain momentum as energy sources diversify Absa Bank's 63 billion kronor sustainability loan bears fruit IRA senior manager of supervision Karai Muze said some investments by several insurers, particularly in the real estate sector, have run into liquidity issues, affecting their ability to settle claims. 

"We know there are some companies that may struggle, but some of that is technically due to the economic situation...There are a lot of companies that are investing in real estate and you know you can leverage real estate to do a lot of different things to make a claim. 

"We have spoken to them, they will address this issue and liquidate the estate," Muze said. The country's economic environment, where unexpected disasters have hit the insurance industry hard, is also  cited as an additional challenge to insurers' liquidity problems. Dr. Hilary Wathinga, CEO of Kenya Reinsurance Corporation, said, "Our economy is facing  liquidity challenges, which is making it difficult to meet financial obligations. Insurers are using artificial intelligence for robotic process automation in claims management. 

This means that the time it takes to settle claims has decreased...Financial liquidity to meet these obligations is a challenge. 

" Insurers have been asked to work on developing innovative products that address the dynamic risk they face, from natural disasters to cyber threats and pandemics. In addition, the region's insurance regulator has been asked to ensure that companies have sufficient provisions to absorb rising losses while also promoting risk mitigation through environmental, social and governance standards that also promote green investments. 

"We need to harmonize regulations and we need  global best practices on how to deal with regulations and business. This event should again stimulate the  thought process but also influence politics," Dr. Wachinga added. Finance Minister John Mbadi said: "Technology has opened geographical borders, so by working together we can ensure that everyone has the opportunity to reach their full potential without the fear of economic ruin from unforeseen events... 

We also improve risk solutions that facilitate cross-border trade." With an average penetration rate of 1.6% across the continent, stakeholders were urged to work on products that will increase penetration and ensure that their product offerings are sustainable.  

The CEO Forum aims to be an annual event that addresses gaps that limit penetration across the continent and fosters collaboration and investment. Tags: InsuranceIRALliquidity Submit a story? Send it via SMS to 25170 or WhatsApp 0743570000, Citizen Digital or email it to wananchi@royalmedia.co.ke.

 Leave a Comment Your Comment  Comments No comments yet. Video of the day:Electric tuk-tuks take over Kenyan streets Trending now Adani says he has 6.5 million Kenyan shillings to pay exam fees Kenya's insurance sector has over 5 billion shillings in insurance claims due to flood damage. 

This was announced at the first Insurance CEO Forum currently taking place in the capital, which brought together over 300 CEOs from 84 countries to discuss the future of the insurance sector. 

This comes after the Insurance Regulatory Authority (IRA) expressed concerns about the liquidity issues facing some insurers. Also read Royal Credit disputes insurance regulator allegations, confirms Direct Line Assurance has ceased operations Cell tower companies gain momentum as energy sources diversify Absa Bank's 63 billion kronor sustainability loan bears fruit IRA senior manager of supervision Karai Muze said some investments by several insurers, particularly in the real estate sector, have run into liquidity issues, affecting their ability to settle claims.

 "We know there are some companies that may struggle, but some of that is technically due to the economic situation...There are a lot of companies that are investing in real estate and you know you can leverage real estate to do a lot of different things to make a claim. "We have spoken to them, they will address this issue and liquidate the estate," Muze said. 

The country's economic environment, where unexpected disasters have hit the insurance industry hard, is also  cited as  another challenge to insurers' liquidity problems. Dr. Hilary Wathinga, CEO of Kenya Reinsurance Corporation, said, "Our economy is facing  liquidity challenges, which is making it difficult to meet financial obligations. Insurers are using artificial intelligence for robotic process automation in claims management. 

This means that the time it takes to settle claims has decreased...Financial liquidity to meet these obligations is a challenge. " Insurers have been asked to work on developing innovative products that address the dynamic risks they face, ranging from natural disasters to cyber threats and pandemics. In addition, the region's insurance regulator has been asked to ensure that companies have sufficient provisions to absorb rising losses while also promoting risk mitigation through environmental, social and governance standards that also promote green investments. 

"We need to harmonize regulations and we need  global best practices on how to deal with regulations and business. This event should stimulate the  thought process as well as influence politics," Dr. Wachinga added. Finance Minister John Mbadi said: "As technology has opened geographical borders, let us work together to ensure that everyone has the opportunity to realize their full potential without fear of economic ruin from unforeseen events. Let us also ensure that we provide remedial risk solutions that facilitate cross-border trade. 

" With an average penetration rate of 1.6% across the continent, stakeholders were urged to work on products that will increase penetration while ensuring that their product offerings are sustainable.  The CEO Forum is intended to be an annual event to  address  gaps that limit penetration across the continent.

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