Business

Businesses feel the brunt as flood compensation claims reach Sh3.1 billion

President William Ruto during a visit Kiamaiko area in Mathare to assess the floods situation in, Nairobi on May 6, 2024. (Photo: PCS)

By Alfred Onyango | Tuesday, June 18, 2024

Out of the 47 counties, 19 counties (40.4 per cent) reported flood-related claims to general insurance companies.

Following the heavy rainfall between March and May that resulted in flooding across the country, businesses were seemingly hard hit, mirrored by the number of claims made to respective insurance firms for flood compensation.

The latest figures from the Insurance Regulatory Authority (IRA) show out of the 47 counties, 19 counties (40.4 per cent) reported flood-related claims to general insurance companies.

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Since the onset of the heavy rains, the regulator says a total of 856 flood claims have been reported from across the country with an estimated value of Sh3.1 billion.

Out of this, claims that were from business class totalled 729.

"So far, insurance firms have reportedly paid 47 business claims worth Sh147.3 million," said Titus Osero, the actuarial services manager at IRA.

Nevertheless, he adds that the business claims outstanding as of the end of April are estimated to be around Sh3.3 billion.

Fire industrial class

The majority of the claims emanated from the fire industrial class of business, followed by fire domestic and motor private in second and third, respectively.

Nairobi is the leading county in terms of the number of claims reported and value.

The county recorded 673 claims worth Sh2.7 billion.

West Pokot, Nakuru and Kiambu followed in line in terms of claim value, standing at Sh74 million, Sh65.5 million and Sh64.9 million, respectively.

The data according to IRA are from submissions of 30 out of 36 general insurance companies, representing 83.3 per cent returns.

This arguably suggests that the numbers could even be higher, painting a picture of the ravage the floods had on the country, destroying homes, farms and personal properties such as motor vehicles.

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