Insurers are ringing the alarm bell

Motor insurers are requesting the government to intervene to curb down total loss average. According to Thomas Gichuhi, chief executive of the Association of Kenyan Insurers, insurers are disbursing 10.3 billion KES (143.5 million USD) in claims in return for premiums worth 15.9 billion KES (221.6 million USD), that is a loss ratio of 65% , in addition to commissions amounting to 10% and to management expenses of 30%.
The motor business combined ratio was around 105% in 2008. Still, according to T. Guchuhi, the State has to cut by half the number of road accidents in order to sustain insurance companies.