A Study on Medical Insurance Claim Ratio in Kenya


Authors : Evans Kiptoo Korir; Arun Kumar V S

Volume/Issue : Volume 5 - 2020, Issue 10 - October

Google Scholar : http://bitly.ws/9nMw

Scribd : https://bit.ly/3nP5jlY

This article identifies and examines the claim ratio trend of insurance companies transacting medical insurance in Kenya. The article then compares the claim ratio of the companies with that of popular insurance companies in the country such as of Jubilee insurance company, Britam general insurance company, ICEA LION insurance company, CIC insurance company, and Madison insurance company. The study is based on secondary data collected from Insurance Regulatory Authority (IRA) website. The reference period for the study was of 6 years which ranged from 2013 to 2018. The study is based on 37 insurance companies and 4 reinsurance companies offering medical cover in the country as per 2018. For calculating the claim ratio, the main variables taken into consideration were Net Premium and claims paid. Stata was the statistical software utilized for the analysis. From the study, insurance companies recorded an average claim ratio of 75.33 during the six-year period, which indicates a profit margin of about 24.77%. The study revealed that Jubilee (71.483%), Britam (67.7%), and ICEA LION (73.65%) reported a lower percentage of claim ratios than the average claim ratio (75.33%) of all the insurers in the country while CIC Insurance (84.4%) and Madison Insurance (93.783%) experienced a higher average claim ratio.

Keywords : Non-Life Insurance, Net Premium, Claim Paid, Medical Cover, Policyholder

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