Home Business Homes pay Sh38bn for non-existent insurance policies

Homes pay Sh38bn for non-existent insurance policies

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Business Daily | by Otiato Guguyu


Businesses, individuals and households have spent Sh38.1 billion on non-existent insurance covers following delays in remitting premiums to insurers, exposing the customers to heavy losses when they make compensation claims.

The delays have resulted from brokers, agents and banks failing to wire premiums to insurance firms covering the risks.

Latest data from the Insurance Regulatory Authority (IRA) shows outstanding premiums increased 6.7 percent to Sh38.1 billion last year as the coronavirus pandemic affected cash flows of insurance intermediaries…

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