Kenya’s insurance industry expanded its premium base to Sh240.3 billion in the second quarter of 2025, reflecting stronger uptake across long-term and general business segments, even as consumer complaints and fraud cases rose, according to the Insurance Regulatory Authority (IRA).

Figures from the regulator show that general insurance remained the largest contributor, accounting for 53.8 per cent of industry premiums, while long-term business made up 45.7 per cent. Microinsurance represented a marginal 0.4 per cent of the total

Long-term business growth

The long-term insurance segment recorded gross premiums of Sh110.39 billion, a 17.7 per cent increase from the previous year.

Net premium income stood at Sh104.68 billion, marking a 27.7 per cent rise. Assets for this segment grew to Sh977.5 billion, largely invested in income-generating portfolios of Sh933.8 billion.

Total claims and benefits paid to policyholders reached Sh67.57 billion, representing a 34.6 per cent jump from a year earlier.

General insurance performance

General insurers collected Sh129.88 billion in gross premiums during the quarter. Claims reached Sh55.06 billion, translating to a claims ratio of 73 per cent compared to 76.5 per cent a year earlier.

Medical and motor business classes dominated the general segment, contributing 67.6 per cent of premiums.

Reinsurance results

Reinsurers’ gross premiums improved slightly to Sh19.58 billion, a 3.1 per cent increase. However, net premium income fell by 3.5 per cent to Sh16.92 billion.

Profitability improved sharply, with profit before tax at Sh2.8 billion, up 64.9 per cent, and profit after tax at Sh1.98 billion, a 131.4 per cent surge.

Within reinsurance, long-term players reported net premiums of Sh2.40 billion, a 22.1 per cent increase, with Group Life policies making up 94.7 per cent of contributions.

Claims under this segment rose 40.7 per cent to Sh1.07 billion.

Industry-wide assets and investments

The insurance industry’s asset base grew 18.4 per cent to Sh1.37 trillion, with 87.8 per cent channelled into income-generating investments worth Sh1.21 trillion.

Government securities were the preferred investment avenue, accounting for 71 per cent of the portfolio, followed by term deposits at 12.3 per cent.

Complaints and fraud cases

The IRA reported 423 consumer complaints during the quarter. General insurance accounted for 78.7 per cent of these, while long-term insurers made up 21.3 per cent.

Of the complaints received, 201 cases against general insurers and 58 against long-term insurers were resolved.

Fraud cases also edged up. The Insurance Fraud Investigation Unit recorded 50 incidents, up from 45 in the same period of 2024.

The most prevalent scams included the issuance of fake motor vehicle insurance certificates (16 cases), theft by agents (nine cases), and fraudulent motor accident and injury claims (eight cases).

New products introduced

During the quarter, the IRA approved eleven new or repackaged insurance products.

These ranged from motor and travel medical covers to savings-linked life assurance policies by providers such as AAR Insurance, Britam, Equity Life, Prudential, and Liberty Life.

The second quarter of 2025 highlighted a dual narrative for Kenya’s insurance market: strong financial growth and expanding investments on one hand, and rising consumer grievances and fraudulent activities on the other.

As the industry consolidates its Sh1.37 trillion asset base, the regulator’s handling of compliance, transparency, and consumer protection will remain central to sustaining confidence in the sector.