Claims Blog

Kenya’s microinsurance sector has expanded rapidly in recent years, but Q3 2025 marked a major turning point. New data from the Insurance Regulatory Authority (IRA) shows a significant increase in both the number of microinsurance claims and the total value of payouts, signalling growing uptake and reliance on low-cost insurance products.

According to the IRA Quarterly Claims Settlement Report for Q3 2025 Quarter 3- 2025 Claims Settleme…, microinsurance claims rose sharply—indicating that more Kenyans are depending on microinsurance for financial protection against life shocks such as hospitalisation, accidents, funerals, and income-disrupting emergencies.

Here’s what the latest data reveals—and why it matters.

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1. Microinsurance Claims Jumped from 28,834 to 34,883 in Just One Quarter

In Q3 2025:

• 34,883 microinsurance claims were reported, up from 28,834 in Q2.
• This represents a 21% increase in claim volumes—one of the highest growth rates across all insurance categories.

This surge shows that microinsurance continues to fill a crucial protection gap for low-income households, informal sector workers, and small businesses.

Why are more Kenyans filing microinsurance claims?

• Greater awareness and adoption of low-cost insurance products
• Increased digital enrollment and simplified claims reporting
• Rising economic vulnerability and income shocks
• Growth of distribution channels such as mobile insurance, SACCOs, and fintech partners

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2. Payouts More Than Doubled to KES 261 Million in Q3 2025

The IRA report also highlights a massive increase in paid claims:

• KES 261.09 million paid out in Q3 2025
• Compared to KES 121.05 million in Q2 2025

That’s a 115% rise in microinsurance payouts in just one quarter.

This signals several positive developments:

• Insurers are responding faster to claims
• Microinsurance products are maturing and delivering genuine value
• Policyholders are increasingly using benefits during times of need

The payment ratio also rose significantly—39.94% of all microinsurance claims were paid, compared to 36.99% the previous quarter.

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3. More Claims Being Reported, More Claims Being Revived

The report shows a sharp rise in claims intimated or revived:

• 23,347 claims in Q3, compared to 20,997 in Q2
• Claim amounts rose from KES 239.76M to KES 363.87M

This suggests that:

• Policyholders are becoming more proactive in reporting losses
• Previously stalled or forgotten claims are being revived
• Microinsurers’ customer-support systems are improving

Revived claims often indicate better follow-up mechanisms and increased policyholder awareness.

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4. Outstanding Claims Grew in Value—Even as Numbers Dropped

An interesting trend from Q3 2025:

• Outstanding claims reduced slightly from 11,536 to 11,374
• But their total value increased from KES 101.23M to KES 120.85M

This means:

• Fewer cases are pending, but the cases remaining involve higher claim amounts
• There may be more complex or high-value claims requiring investigation
• Microinsurers are dealing with costlier losses than before

This shift suggests that microinsurance is slowly expanding beyond basic low-value products to cover more meaningful risks.

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5. Claim Rejections Dropped Significantly

The number of declined claims fell:

• From 6,632 in Q2 to 4,692 in Q3
• Claim decline amounts fell from KES 66.9M to KES 43.16M

This is a major consumer win.

What it means:

• Fewer customers are being denied benefits
• Documentation and claim procedures may have improved
• Product terms are becoming more transparent
• Insurers are resolving disputes more efficiently

For policyholders, this means higher chances of successful payouts—especially when claims are filed correctly.

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6. Why the Rise in Microinsurance Claims Matters for Kenya

Microinsurance plays a critical role in bridging the protection gap for millions of Kenyans who cannot afford traditional insurance products.
The Q3 2025 trends show that microinsurance is no longer a peripheral service—it’s becoming a core safety net for vulnerable communities.

Key implications:

✔ More Kenyans are protected against health, accident, and income-related shocks

✔ Microinsurance providers are processing and paying more claims

✔ Confidence in microinsurance products is rising

✔ Fintech and mobile insurance distribution is fuelling demand

✔ Increased payouts show real impact on household financial resilience

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7. What Policyholders Should Know Going Forward

1. Understand your policy terms

Microinsurance products differ—some cover hospital cash, others cover death, disability, or income loss.

2. File claims early

Late reporting remains a common reason for declined claims.

3. Keep documentation simple and digital

Most microinsurance partners accept digital receipts, photos, or SMS confirmations.

4. Follow up consistently

Even though rejections dropped, thousands of claims still go unresolved each quarter.

5. Escalate disputes when necessary

Claims.co.ke can help review, escalate, and resolve microinsurance claim issues.

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Final Thoughts: Microinsurance Is Becoming a Powerhouse in Kenya’s Insurance Landscape

The Q3 2025 IRA data paints a clear picture:
Microinsurance is growing faster than any other insurance category in Kenya—both in usage and in payouts.

With rising claims, higher payouts, fewer rejections, and improved settlement ratios, microinsurance is proving its value to millions of households who rely on affordable risk protection.

As more Kenyans embrace these low-cost insurance solutions, the industry must continue improving transparency, customer education, and digital claims processing to maintain this momentum.

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Need Help With a Microinsurance Claim?

Whether your claim has been delayed, declined, or ignored, Claims.co.ke can help you:

• Understand your policy and entitlements
• File or refile your claim correctly
• Follow up with insurers
• Escalate disputes to the IRA

Contact us today for expert claim support.