Kenya Insurance Claims in Q3 2025: Key Trends Every Policyholder Must Know
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Kenya’s insurance landscape continues to shift rapidly, and the Q3 2025 Insurance Claims Settlement Report from the Insurance Regulatory Authority (IRA) provides the clearest picture yet of how insurers are performing—and what policyholders should expect.
According to the report Quarter 3- 2025 Claims Settleme…, claims volumes rose sharply, non-liability claims continued to dominate, and payment patterns shifted across all insurance classes.
Whether you are a policyholder, agent, lawyer, or industry observer, this digest will help you understand the key highlights that matter most.
1. Total Claims Are Rising Across the Industry
The report reveals that claims increased across almost every category:
- General liability claims: 151,009 claims, valued at KES 41.50 billion (up from KES 40.51B)
- General non-liability claims: 7.56 million claims, worth KES 69.06 billion
- Long-term (life) insurance claims: 185,317 claims
- Microinsurance claims: 34,883 claims—showing a major surge
The numbers show one clear trend: more Kenyans are filing claims, and insurers are handling increasingly heavier workloads.
2. Non-Liability Claims Continue to Dominate
Non-liability claims—which include motor own-damage, health, fire, and other direct policyholder claims—again formed the bulk of the industry’s workload.
- Over 7.5 million claims were filed in Q3 2025.
- Although the number of claims fell slightly, their total value rose to KES 69.06 billion.
This means that while fewer claims were filed, they were higher in value, signalling more expensive medical treatments, vehicle repairs, and property-related losses.
3. Shifting Claims Payout Patterns
Claims paid out by insurers changed significantly across categories:
General Insurance
- Liability claims paid: 16,551 claims worth KES 5.54B
- Non-liability claims paid: 4.8M claims worth KES 23.70B
Payment ratios are improving:
- Liability payment ratio: 10.96%
- Non-liability payment ratio: 63.62%
This suggests Kenyan insurers are paying more claims—especially non-liability—in faster cycles.
Long-Term (Life) Insurance
- Claims paid: 143,710, worth KES 31.28B
- Both the number and value of paid life claims declined slightly
The decline in life payouts despite rising outstanding claims suggests processing delays or slower benefit maturity cycles.
Microinsurance
Microinsurance saw the strongest growth in both claims reported and paid.
- Claims paid: 13,932, worth KES 261.09M
- Payment ratio: 39.94%, a major improvement from the previous quarter
This confirms that microinsurance is becoming more popular—and more responsive—for low-income households.
4. More Claims Are Being Declined—Especially Under Liability
A key red flag in Q3 2025 was the sharp rise in declined claims.
- Liability claims declined increased by 1,939%, driven majorly by APA Insurance
- Non-liability and life claims saw moderate declines in rejection rates
Reasons for decline typically include:
- Missing documents
- Policy exclusions
- Late reporting
- Fraud concerns
For policyholders, this highlights the need to understand your policy terms, file claims early, and maintain proper documentation.
5. “Closed as No Claim” Cases Are on the Rise
This category refers to claims where insurers initially create provisions but the liability never materializes.
In Q3 2025:
- Liability: 3,105 cases (up 96%)
- Non-liability: 4,779 cases (up 50%)
An increase in “no claim” closures often points to:
- Duplicate claims eliminated
- Claimants failing to follow up
- Cases where liability couldn’t be established
This highlights the importance of consistent follow-up once you file a claim.
6. Outstanding Claims Are Growing in Value
Although the number of pending claims in some classes declined, the total value of unsettled claims continued to rise.
For example:
- Liability outstanding value: KES 35.42B
- Non-liability outstanding value: KES 43.88B
- Life outstanding value: KES 11.58B
Higher outstanding balances may indicate:
- Slower settlement cycles
- Higher-value claims taking longer to assess
- Increased litigation, especially in liability claims
7. Complaints to the IRA Increased Sharply
A total of 532 complaints were filed with the Authority—up from 423 in Q2 2025.
- 82% were against general insurers
- Delayed settlement of claims was the leading complaint in both general and long-term insurance
- 53.1% of general complaints remained unresolved by end of Q3
This confirms what many Kenyans feel: claims delays remain a major challenge.
What This Means for Policyholders
✔ Claims are rising—expect stricter documentation
As insurers face more claims, they will demand more accurate paperwork.
✔ Payment speeds are improving in some classes
Especially non-liability and microinsurance.
✔ Rejected and stalled claims are still a major risk
Always report claims promptly and understand policy exclusions.
✔ Delays remain the number-one complaint
Be proactive: follow up frequently and escalate when necessary.
How to Protect Yourself When Filing a Claim
- Report the incident immediately (within 24–48 hours).
- Keep copies of all documentation—photos, receipts, medical reports.
- Understand your policy’s exclusions before filing.
- Follow up regularly and keep a record of all communication.
- Escalate unresolved claims to the IRA or a claims advocacy service like Claims.co.ke.
Final Thoughts
The Q3 2025 claims data shows a sector under pressure but also improving in many areas—especially payment ratios for non-liability and microinsurance. However, delays and rising outstanding claim values signal that policyholders must remain vigilant and informed.
Claims.co.ke will continue to break down these trends to help you make better insurance decisions.
