Association of Kenya Insurers, chief executive Tom Gichuhi [photo: Business today Kenya]
Jan, 15th 2021 – Medical insurers in Kenya posted their highest-ever underwriting profit in the six months ended June last year on reduced bills. This is as patients avoided hospitals for fear of contracting COVID 19.
Association of Kenya Insurers (AKI), chief executive Tom Gichuhi says medical insurance firms made 891 million shillings profit over the half-year period. This is a record performance for the firms which have over the years posted losses.
“Many people avoided going to hospitals for fear of contracting Covid-19. There was highly reduced traffic to hospitals and even those seeking elective surgeries were also postponed,” he said.
The Ksh891.05 million profit was 3.2 times higher than the Ksh280.37 million posted in the preceding half-year. This places medical insurers on a strong footing to continue with the recovery from the 1.1 billion shillings loss they registered in 2018.
Out of the 24 medical insurers, only seven posted underwriting losses. This is a big improvement from a similar period the previous year when a majority of the firms were in the red.