How insurers plan to lower premiums

Insurance Institute of Kenya (IIK) director Caroline Munene and Central Bank of Kenya Governor Patrick Njoroge and the Insurance Regulatory Authority (IRA) CEO Sammy Makove during the IIK's 30th annual conference in Nairobi on October 23, 2015. PHOTO | SALATON NJAU | NATION MEDIA GROUP 

In Summary

• Insurance Institute of Kenya (IIK) Director Caroline Munene said the Sh324 million lost through fraud in the past ten months, meant insurance companies would enhance premium payments to remain afloat with the cost passed on to clients.
• Mrs Munene said that prompt reporting via an online portal on insured clients’ admission to hospitals to insurance companies, would also reduce incidences where false claims made by individual hospitals, without a patient’s knowledge, are forwarded for payment.
• In an interview with the Nation, Mrs Munene, who is also the AAR Insurance managing Director said that Kenya was witnessing growth of the insurance sector albeit slowly due to lack of adequate professionals.

By JAMES KARIUKI
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A lobby group has called for the adoption of an integrated insurance data system to throw out fake medical and motor insurance claims that have made the cost of insurance unbearable.

Insurance Institute of Kenya (IIK) Director Caroline Munene said the Sh324 million lost through fraud in the past ten months, meant insurance companies would enhance premium payments to remain afloat with the cost passed on to clients.

“An integrated information-sharing platform among insurance companies and hospitals is very welcome as it will completely wipe out fraudulent multiple claims by same individuals on the same accident to different insurance companies,” she said.

Mrs Munene said that prompt reporting via an online portal on insured clients’ admission to hospitals to insurance companies, would also reduce incidences where false claims made by individual hospitals, without a patient’s knowledge, are forwarded for payment.

“Medical policy premiums amounted to Sh25 billion but the claims and the operational costs surpassed this amount. It hardly helps anyone since Kenyans suffer as many insurance companies will not be willing to provide private health financing,” she said.

IIK, she said, had launched an intensive insurance clients’ sensitisation campaign that will demand that all insured people scrutinise their medical bills before payment is effected, thereby, helping reduce inclusion of costly services, procedures and drugs that have not been rendered.

In an interview with the Nation, Mrs Munene, who is also the AAR Insurance managing Director said that Kenya was witnessing growth of the insurance sector albeit slowly due to lack of adequate professionals.

In a survey released by KPMG mid this year, fraudulent claims were blamed for high premiums in Kenya that had gone up by 25 per cent.

KPMG Associate Director James Norman said Kenya had the potential to reverse the trend due to willingness by insurance companies and policyholders to report and share data relating to the malpractice.