Why Non-Liability Claims Dominated Kenya’s Insurance Sector in Q3 2025
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Kenya’s insurance industry experienced one of its most dynamic quarters in recent years—especially in the area of non-liability claims. According to the Insurance Regulatory Authority (IRA) Q3 2025 report, more than 7.5 million non-liability claims were reported, making them the single most dominant category in the insurance sector.
In comparison, liability claims (third-party related) totaled just 151,009 claims—a tiny fraction of the overall claims activity.
So, why are non-liability claims growing at such a massive rate, and what does it mean for policyholders?
Here’s a breakdown of the key trends every Kenyan policyholder needs to understand.
1. What Are Non-Liability Claims?
Non-liability claims refer to direct policyholder claims, where the insured person or business seeks compensation for their own loss. These include:
- Motor own-damage claims
- Health insurance claims
- Fire and property damage claims
- Personal accident claims
- Domestic package claims
- Funeral and hospital cash claims
Because these losses affect the policyholder directly and often require immediate financial response, they tend to be more frequent than third-party (liability) claims.
2. Non-Liability Claims Surged Past 7.5 Million in Q3 2025
The IRA report highlights a massive 7,557,397 non-liability claims filed in Q3 2025—an increase from the 7.26 million reported the previous quarter.
This demonstrates:
- Higher utilisation of insurance benefits
- Increased awareness among policyholders
- Rising cost of healthcare, vehicle repairs and property restoration
But the most notable insight is that these claims dwarfed liability claims, which stood at only 151,009 during the same period.
This means non-liability claims accounted for more than 98% of all general insurance claims.
3. Health and Motor Are the Main Drivers of High Claim Volumes
While the IRA report does not break down claims by subclass within this excerpt, industry trends clearly show that:
i. Motor Claims (Own Damage)
Accidents, vandalism, weather damage, and rising vehicle repair costs have significantly increased the volume and value of motor claims. With parts inflation and a growing vehicle population, claim amounts are steadily rising.
ii. Medical Claims
Healthcare inflation is a global issue—and Kenya is no exception.
Non-liability claims in health include:
- Hospitalization and surgical claims
- Outpatient reimbursements
- Laboratory and pharmacy claims
These high-frequency, high-cost claims remain a major contributor to the surge.
4. Value of Non-Liability Claims Grew to KES 43.88 Billion
Another key highlight from the report:
- Non-liability outstanding claims increased from KES 43.40B to KES 43.88B.
- Total non-liability claim payouts reached KES 23.70B in Q3 2025, the highest compared to other classes.
This shows that although insurers are paying more claims, the total volume of unsettled and pending non-liability claims is still increasing—indicating pressure on insurance liquidity and servicing capacity.
5. Faster Payments: Non-Liability Claims Had a 63.6% Payment Ratio
Non-liability claims performed significantly better than liability claims in terms of payout speed:
- 63.62% payment ratio for non-liability claims
- Only 10.96% payment ratio for liability claims
Why the difference?
Non-liability claims are easier to verify.
Insurers can quickly assess:
- Medical bills
- Vehicle inspection reports
- Repair quotations
- Property damage assessments
These are straightforward compared to liability claims, which often involve:
- Court processes
- Third-party disputes
- Extended investigations
6. Why Non-Liability Claims Are Dominating the Market
i. Higher frequency of personal losses
Medical needs and car accidents occur far more frequently than third-party disputes.
ii. Rising cost of living and healthcare
As cost pressures increase, more Kenyans rely on insurance to cover medical and repair expenses.
iii. Increased insurance uptake
NHIF reforms and private health insurance growth have expanded the claimant base.
iv. Digital filing makes claims easier
More insurers now support app-based or USSD claim notifications, encouraging quicker filing.
v. Greater awareness
Policyholders now understand their benefits better and file claims more confidently.
7. What This Means for Policyholders in Kenya
✔ Expect insurers to tighten verification requirements.
With higher claim volumes, insurers may demand more documents or apply stricter claim checks.
✔ Premiums in health and motor classes may rise.
Insurers adjust premiums when claim frequencies increase beyond projections.
✔ Faster payouts are still possible—if documentation is complete.
With a payment ratio of over 63%, non-liability claims are still the easiest to settle.
✔ Follow up on outstanding claims.
Over 2.7 million non-liability claims remained unsettled, so don’t wait—follow up.
8. Final Thoughts: Non-Liability Claims Are Reshaping Kenya’s Insurance Future
The dominance of non-liability claims in Q3 2025 reveals a fundamental shift:
Insurance in Kenya is becoming more personal and more frequently used.
As more Kenyans rely on insurance for everyday risks—from hospital bills to car repairs—insurers must adapt with:
- Faster digital claims processes
- Better customer communication
- Improved fraud detection
- Enhanced turnaround times
Policyholders, on the other hand, need to stay informed and proactive in managing their claims.
At Claims.co.ke, we help you navigate the claims process, escalate disputes, and understand your rights.
If you have a delayed, declined, or unfair claim, we are here to help.
Need Help With a Non-Liability Claim?
Let our team assist you with:
✔ Motor accident claims
✔ Health insurance claims
✔ Property damage claims
✔ Disputed or delayed claims
Contact us today for support.
