The sections that follow summarise the key findings arising from this analysis, supported by an assessment of data availability and identified analytical gaps.
Overall, the datasets used in this analysis have been assessed and found to be reliable and fit for purpose .
There is a continued need to proceed with the portfolio clean-up process, either by dropping high-risk accounts or repricing adequately to reflect elevated risk exposure.
To offset the impact of dropped poor-performing accounts with long-tailed claims, we should aim to grow the Motor Commercial class, targeting well-performing accounts while maintaining strict underwriting discipline.
Improve claims management efficiency and regular monitoring using incurred claims ÷ earned premium claim ratio approach for different segments.
Exercising more caution on liability limits, i.e. any one person and any one event; as it is becoming more likely for legal claims to exceed the KES. 5 million threshold.
Excess Protector – Reinstatement Terms: The policy currently permits unlimited reinstatements of the excess protector, which may unintentionally encourage overreliance and diminish prudent risk management among insureds. Share risk with clients by introducing limits on the availability and distribution of the excess protector.
Claims–Underwriting Collaboration at Renewal: Strengthen collaboration between Claims and Underwriting during the renewal process to proactively address emerging risks, including qualitative insights not captured in data, and agree on practical remedial actions for key accounts. Lessons can be drawn from historically well-performing large accounts to inform best practices.
Due Diligence on New Business: Conduct comprehensive background checks on new business, including a thorough review of clients’ track records, to ensure alignment with the company’s risk appetite and underwriting standards.
Executive Support on Key Accounts: Enhance executive involvement in negotiating key motor accounts to maintain a balanced portfolio between motor and property classes, in view of existing cession patterns within the property segment.
| Year | Register | Financials | Variance | % Variance | Register | Financials | Variance | % Variance |
|---|---|---|---|---|---|---|---|---|
| 2014 | 263,841,968 | 268,122,574 | -4,280,606 | -1.6% | 195,264,275 | 191,913,875 | 3,350,400 | 1.7% |
| 2015 | 235,811,697 | 237,787,128 | -1,975,430 | -0.8% | 159,930,264 | 160,392,527 | -462,263 | -0.3% |
| 2016 | 340,155,824 | 332,012,605 | 8,143,219 | 2.5% | 273,489,310 | 268,809,201 | 4,680,109 | 1.7% |
| 2017 | 332,173,410 | 325,814,156 | 6,359,254 | 2% | 335,903,994 | 329,063,580 | 6,840,414 | 2.1% |
| 2018 | 453,592,353 | 456,594,571 | -3,002,218 | -0.7% | 447,088,967 | 431,671,974 | 15,416,993 | 3.6% |
| 2019 | 541,379,378 | 547,039,591 | -5,660,213 | -1% | 471,707,046 | 473,367,722 | -1,660,676 | -0.4% |
| 2020 | 509,398,545 | 544,678,102 | -35,279,557 | -6.5% | 599,588,926 | 593,298,801 | 6,290,125 | 1.1% |
| 2021 | 749,508,040 | 771,995,672 | -22,487,632 | -2.9% | 1,021,513,880 | 1,021,865,032 | -351,152 | 0% |
| 2022 | 1,098,355,237 | 1,079,915,239 | 18,439,998 | 1.7% | 1,078,524,662 | 1,104,754,825 | -26,230,163 | -2.4% |
| 2023 | 1,372,409,203 | 1,376,959,807 | -4,550,604 | -0.3% | 1,336,032,596 | 1,333,768,212 | 2,264,384 | 0.2% |
| 2024 | 1,340,218,061 | 1,339,479,575 | 738,486 | 0.1% | 1,495,898,544 | 1,514,825,597 | -18,927,053 | -1.2% |
| 2025 | 1,411,464,736 | 1,396,560,520 | 14,904,216 | 1.1% | 1,438,449,382 | 1,378,174,070 | 60,275,312 | 4.4% |
The next graph shows the movement of funds from the Earned Premium position to Net Profit or Loss, accounting for key factors such as claim payments, service provider fees, intermediary commissions, miscellaneous expenses, overhead costs, and changes in outstanding claim reserves. This waterfall chart clearly illustrates how each factor impacts the journey from earned premiums to the bottom line.
In 2025, Motor Commercial recorded a KES -235 million result driven by adverse premium and claims trends, excluding the impact of outstanding claims and IBNR.
In 2025, Motor Private achieved a margin of 3% (18% without miscellaneous expenses), potentially signalling a rebound after the challenging performance observed from 2021 to 2023.
The next section evaluates the claims experience.
We begin by decomposing the overall claims expense into its key components: claim payments, service provider fees, miscellaneous expenses, and the offsetting impact of excesses, salvage, and recoveries.
The main driver of claims expense is Claim Payments, followed by Service Provider Fees and Miscellaneous Expenses.
We observe a growing positive contribution from Salvages and Recoveries, while the impact of Excess is shrinking, potentially reflecting increased uptake of excess protector coverage.Further investigation into the motor private salvage value recorded in 2022.
For Motor Private, Claim Payments declined in 2025, but the benefit was offset by higher Miscellaneous Expenses.
For both Motor Private and Commercial, we examine the pattern of claims split into Legal and Own Damage, as summarized below.
Impact of Frequency and Severity
Motor Private 2025: Total paid claims declined, primarily due to a reduction in Own Damage payouts, driven by a decrease in the number of claims (-11%) and lower average severity (-5.5%).
Motor Commercial 2025: Total claims payouts increased, mainly driven by growth in Own Damage claims.This increase was driven by a higher average claim cost (+22%), despite a decline in the total number of claims paid (-6%).
Impact of Watu
Significant reduction in Own Damage Watu claim payments, indicating a run-off pattern.
Significant payouts continue on the Legal side, totaling KES 194 million in 2025.
Legal claims remain under development, and further payouts are expected.
Claim Count
For two consecutive years, we observe a decline in Own Damage (OD) claims alongside a gradual rise in Legal claims.
OD Service Provider Payouts: Expected to reflect a similar declining pattern.
Team Workload: The sudden increase in claims in 2021 raises questions on staffing. If current trends continue, the number of claims may fall below 2021 levels, prompting a review of headcount for both OD and Legal teams.
Average Claims Paid
Legal claims are generally higher than OD claims, averaging around KES 700K.
There was a sharp increase in average legal claims between 2017 and 2020, after which they stabilized.
Motor Private OD claims are well controlled, but Motor Commercial OD severities have been rising year-on-year since 2022, with 2025 average OD Motor Commercial claims growing over 20%—a trend that needs addressing.
There is need to review the claims reserving guidelines to reflect the most recent trends.
YoY Growth Rate
Significant increase in year-on-year growth in 2021 (both claim amounts and claim counts), which should have served as an early warning signal of the poor performance later observed under the Watu Scheme.
The legal claims payment trend closely followed the earlier Watu own-damage (OD) trend.
A growing number of legal Motor Private claims continues to exert upward pressure on overall claims development.
We now narrow the focus to review Legal claims first, followed by Own Damage claims.
Note: It is not possible to reliably distinguish the nature of Legal losses (e.g., property damage, bodily injury, or death). The scatter plot below shows Legal claims paid over the past 10 years.
The largest Legal claim paid in the past 10 years was approx. KES 23 million in 2016.
Earlier years had few Legal claims, where outliers could significantly distort the average.
It is becoming increasingly common to pay claims above KES 5 million. This underscores the importance of exercising more caution on benefit limits, i.e. any one person and any one event.
For Own Damage (OD) claims, it is possible to further classify them into: Windscreen, Repairs, Thefts (partial & total), and Total Loss (from accidents).
Repairs
Motor Private: 65–75% of claims, ~3,000 claims annually. Sharp increase in average claim cost in 2024, followed by a marginal increase in 2025. This may largely be due to Shama’s supply of parts.
Motor Commercial accounts for 45–55% of total payouts, with approximately 900 claims annually. Of these, GREENWHEELS ELECTRIC MOBILITY SOLUTIONS LTD contributed 194 claims in 2025.
Motor Commercial’s overall claim severity appears to be declining. However, when motorcycle repair claims are excluded, the 2025 average claim increases from 384,974 to 502,235, representing a 5% reduction compared to the 2024 average. This suggests that the apparent improvement is largely driven by lower-value motorcycle repair claims rather than an overall reduction in claim costs.
Total Loss
Accounts for 25–30% of total claim payouts under Motor Private and Commercial.
The number of cases has been declining.
Motor Commercial 2025: Contribution rose to 40% (from 26% in 2024), driven by both number of claims and average claim amount.
The increase in total losses is the main driver of higher average cost per claim in Motor Commercial OD.
Recommendation: Investigate Total Loss cases under Motor Commercial in 2025.
Thefts
Motor Private: ~20 vehicle theft cases annually, while Motor Commercial: less than 10 cases before Watu.
Watu credit: Motor Commercial theft cases rose to 1,500 per year.
Partial thefts have minimal impact.
Windscreen
Contributes about 1.5% of total payouts in both Motor Commercial and Motor Private, made up of approximately 500 motor commercial and 1,000 motor private claims.
Average claim cost shows no major concern, with year-on-year growth within inflation thresholds.
Total payout is declining.
Claims Assessment Approach: Given the high claim frequency, we recommend continuing with desktop assessments to optimise efficiency and avoid incurring additional physical claim assessment costs.
Empanelled garages
Empanelment of garages is currently work in progress, with a dedicated resource reviewing the onboarding process and conducting background checks on related parties for compliance and proper governance.
At the moment, about 14 garages have been vetted, with Shamas Motors Ltd still leading in supplies.
The 14 vetted garages include:
Key Observations
Motor Private – Parts Supply (Empanelled): Empanelled garages account for approximately 20% of total claim payouts in 2025 under Motor Private, indicating growing adoption of parts supply within the empanelled network.
Motor Commercial – Parts Supply (Empanelled): Empanelled garages contribute only 4% of parts supply by value, suggesting limited utilisation under Motor Commercial.
Average Claim Cost – Empanelled vs Other Garages: Empanelled garages exhibit a significantly lower average repair claim cost compared to non-empanelled garages. This warrants further investigation to determine whether the difference arises from case mix (simpler claims being referred to empanelled garages) or from genuine cost efficiencies and savings within the empanelled network.
The plot below shows the key Own Damage claim metrics.
Key Observations
Motor Private OD: Experience is primarily driven by Repairs.
Motor Commercial OD: Experience is mainly driven by Total Losses, especially now that the impact of Watu Credit is fading.
Average Cost – Total Losses (Motor Commercial): Has been increasing consistently since 2020. Despite a decrease in the number of cases, the severity of losses limits potential gains.
Average Cost – Repairs: On a decline for both Motor Private and Motor Commercial.
Watu Credit Impact: Continued effects may be observed on the Legal side under Motor Commercial.
Recommendation: Adopt this monitoring framework regularly to prevent adverse schemes like Watu Credit in the future.
Legal Services
Purpose: Legal service providers are engaged to defend our policyholders or pursue recoveries. Our data does not distinguish between these two activities.
Cost vs. Outcome: A successful defense results in no claim payout (case dismissed), so calculating total service provider expense per shilling of claim does not accurately reflect the cost of processing claims.
Investigators: Paid to assess claim potency; this cost applies to most or all legal cases.
Court Filing Costs (Recovery assignments): Filing a claim in court costs KES 70–100K, whether pursuing recovery or responding to summons. These amounts are currently included in service provider fees, which are regulated by the LSK act.
Third-Party Claim Payment Refunds: Where empanelled lawyers settle claims on our behalf and later seek reimbursement, legal fees may appear elevated. In this analysis, service provider fees are capped at KES 300K, with any excess classified as a claim.
Multiple claimants in one claim number: An advocate may be engaged to defend cases relating to one claim even though there are several claimants. In that case, legal fee reviewed per claim number may appear to be unreasonably high.
Only a few doctors such as Dr. Malik are engaged for court appearances, and these will usually cost around KES 20,000.
Court appearance for doctors requires professionalism and familiarity with the court environment when giving a professional opinion.
Future Tracking: To monitor out-of-court settlements (legal claims paid without the involvement of our empanelled lawyers).
Own Damage Service Provider Fees - Zayan: Paid for towing services, with fees dependent on the location of the salvage. - Assessments/Investigations in far away towns such as Mandera County will attract additional cost reimbursements for logistics expenses and may cost upwards of KES 10,000 – 15,000. This may adversely affect providers such as xenon with countrywide presence.
The next scatter graph shows the key service provider metrics for each service provider.
Further Analysis Required
Service provider fees (Legal Payments): Extract the fee component using the withholding tax entries booked per claim.
Legal costs breakdown: Split legal costs into claim defense versus recovery costs. Since both defense and recovery is probabilistic, it would be valuable to identify successful and unsuccessful recoveries.
We analyzed staffing levels over the years to understand how the team grew in relation to claims volume.
Only active officers are considered in this analysis — defined as those who approved at least 10 million annually and, if present in the previous year, whose total approvals did not decline by more than 50%, ensuring that mid-year exits are excluded.
Julius also excluded in staff count.
For both the OD and Legal teams, the workload has effectively doubled over the analysis period, assuming that work is shared equitably across team members.
The OD team was understaffed in 2021, coinciding with several team exits and a rising claims workload - the onset of Watu Credit claims. Over the past two years, however, there has been a gradual decrease in total claims, suggesting that it may be necessary to review the staffing strategy if these trends continue.
Actual claim distribution
The graph below illustrates the members of the motor claims team and the actual annual amount of claims approved by each member.
claims learning curve
WASONGA — an officer who, in their first year on the claims team (2021), approved the highest volume of payments, before leaving the team the following year.
The analysis also revealed a uneven distribution of tasks, with some officers clearly handling more claims than their peers.
Some officers cumulatively approved payments exceeding KES 350 million annually.
In some instances, officers appeared to process a high volume of claims when interns were using their accounts to make payments.
Further analysis may be required to redistribute this activity to the respective interns working under a certain officer — the available data is currently insufficient to support this analysis.
Recommendation: Investigate the efficiency of the maker-checker frameworks in place, noting the existence of ‘offline’ claims approvers and officers who process claim payments only.
The graph below shows the time taken from the date of loss to the payment of a claim.
Own Damage (OD) claims increased from approximately 90 days in 2017 to around 150 days in 2025, potentially reflecting service delays or extended credit terms with garages.
Legal claims have decreased from roughly four years in 2017 to approximately two years in recent periods (2014–2025), likely due to the introduction of the Small Claims Court.
Recommendation for further analysis: Disintegrate the claim lifecycle into sub-tasks within claim processing.
Our data is currently insufficient to support this level of analysis. We recommend that this information be captured either in EDMS or within the new system.
| uw | average_premium | GWP | EP | Dev 0 | Dev 1 | Dev 2 | Dev 3 | Dev 4 | Dev 5 | Dev 6 | Dev 7 | Dev 8 | Dev 9 | Dev 10 | Dev 11 | OS_LR | Incurred_LR |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | 4.67 | 418 | 418 | 19.5 | 28.9 | 34 | 41.1 | 46.5 | 49.8 | 50.6 | 51.3 | 51.8 | 52 | 52.6 | 52.6 | 0.0 | 52.6 |
| 2015 | 4.54 | 480 | 480 | 23.8 | 43.6 | 48.9 | 53.2 | 56.9 | 58.1 | 58.7 | 59.8 | 59.8 | 60 | 60.4 | 0.0 | 60.4 | |
| 2016 | 4.61 | 587 | 587 | 23.0 | 38.1 | 44.5 | 50.5 | 52.5 | 54.2 | 55.5 | 56.2 | 56.3 | 56.4 | 0.2 | 56.6 | ||
| 2017 | 4.44 | 652 | 652 | 22.6 | 39.6 | 46.3 | 49.2 | 50.8 | 52.6 | 56 | 57.3 | 57.6 | 0.3 | 57.9 | |||
| 2018 | 4.32 | 736 | 736 | 27.5 | 49.5 | 58.3 | 63.1 | 68.4 | 70.2 | 71.8 | 72.4 | 0.1 | 72.5 | ||||
| 2019 | 4.04 | 762 | 762 | 28.2 | 46.7 | 55.9 | 60.4 | 64.5 | 67.5 | 69.2 | 2.5 | 71.7 | |||||
| 2020 | 3.88 | 1,002 | 1,002 | 21.2 | 44.9 | 54.8 | 64.4 | 71.1 | 74.5 | 2.5 | 77.0 | ||||||
| 2021 | 4.10 | 1,034 | 1,034 | 31.1 | 53.7 | 65.7 | 75.5 | 83.5 | 38.8 | 122.3 | |||||||
| 2022 | 4.39 | 1,361 | 1,361 | 35.3 | 50.1 | 60.5 | 68.3 | 8.5 | 76.8 | ||||||||
| 2023 | 4.39 | 1,383 | 1,383 | 21.9 | 40.3 | 50.8 | 11.1 | 61.9 | |||||||||
| 2024 | 4.29 | 1,442 | 1,442 | 13.7 | 43.4 | 18.8 | 62.2 | ||||||||||
| 2025 | 4.25 | 1,513 | 955 | 19.1 | 28.7 | 47.8 |
| uw | average_premium | GWP | EP | Dev 0 | Dev 1 | Dev 2 | Dev 3 | Dev 4 | Dev 5 | Dev 6 | Dev 7 | Dev 8 | Dev 9 | Dev 10 | Dev 11 | OS_LR | Incurred_LR |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2014 | 4.02 | 295 | 295 | 28.6 | 41.5 | 44.1 | 48 | 49.8 | 52.8 | 53.3 | 55.8 | 55.7 | 54.8 | 54.8 | 55 | 0.0 | 55.8 |
| 2015 | 3.90 | 383 | 383 | 31.6 | 48.3 | 57.5 | 61.8 | 62.4 | 63.1 | 63.8 | 64.5 | 64.5 | 64.3 | 64.5 | 0.0 | 64.5 | |
| 2016 | 3.80 | 495 | 495 | 36.4 | 54.8 | 60.9 | 66.1 | 69.8 | 72.6 | 73.4 | 74.3 | 74.5 | 74.5 | 0.0 | 74.5 | ||
| 2017 | 3.77 | 549 | 549 | 33.4 | 57.9 | 64.6 | 68.1 | 70.7 | 71.9 | 72.5 | 73.4 | 73.4 | 0.3 | 73.7 | |||
| 2018 | 3.67 | 649 | 649 | 40.2 | 58.9 | 64.8 | 68.2 | 71.4 | 72.7 | 73.5 | 73.6 | 0.1 | 73.7 | ||||
| 2019 | 3.59 | 794 | 794 | 35.9 | 58.8 | 68.2 | 71.5 | 75.9 | 78 | 78.7 | 0.5 | 79.2 | |||||
| 2020 | 3.31 | 1,078 | 1,078 | 33.7 | 68.2 | 79.7 | 91 | 96.2 | 98.7 | 1.8 | 100.5 | ||||||
| 2021 | 3.65 | 1,330 | 1,330 | 44.7 | 71.8 | 84.2 | 90.5 | 95.7 | 3.6 | 99.3 | |||||||
| 2022 | 3.87 | 1,519 | 1,519 | 33.9 | 59.6 | 68.4 | 73.2 | 4.3 | 77.5 | ||||||||
| 2023 | 3.84 | 1,756 | 1,756 | 33.3 | 58.3 | 66.3 | 4.6 | 70.9 | |||||||||
| 2024 | 3.77 | 1,807 | 1,806 | 33.9 | 52.7 | 8.0 | 60.7 | ||||||||||
| 2025 | 3.05 | 1,729 | 1,036 | 22.8 | 18.0 | 40.8 |
The dataset includes multiple features that capture and explain key dimensions of performance. These features are summarized in the table below.
Profitability by Cover type - TPO VS Comprehensive
TPO coverage eroding profitability in the motor commercial book, while registering high levels of volatility coupled with high claim ratios for certain years in motor private.
We review the pricing of TPO across various products in order to interpret the claim ratio results.
Third Party Only (TPO) Premiums Summary – 2025
| Segment | Policy_Type | Treaty_Single | Treaty_Fleet |
|---|---|---|---|
| Motor Private | 12,000 | 10,000 | |
| Motor Commercial (Own Goods) | Up to 3 Tons | 12,000 | 10,000 |
| Motor Commercial (Own Goods) | 3–8 Tons | 15,000 | 12,500 |
| Motor Commercial (Own Goods) | Above 8 Tons | 20,000 | 18,000 |
| Motor Commercial (General Cartage) | Up to 8 Tons | 20,000 | 15,000 |
| Motor Commercial (General Cartage) | 8–20 Tons | 25,000 | 20,000 |
| Motor Commercial (General Cartage) | 20–30 Tons | 30,000 | 25,000 |
| Motor Commercial (General Cartage) | Prime Mover | 25,000 | 20,000 |
We now explain the rationale used to group policyholders and intermediaries into various categories based on their size.
Insured Category Policyholders are divided into four quartiles based on the size of their business per underwriting year. The graph below shows the contribution of each category to our Motor business.
Observation: 74% of our small customers in Motor Commercial contribute only 11% of total Motor Commercial premium. In contrast, 33 premium customers contribute 38% of total Motor Commercial premium.
Intermediary Category Intermediaries are divided into four quartiles based on the size of their Motor portfolio with us. The table below shows the 2025 insured category insights.
Other Adjustments Include:
Third Party Only (TPO) business is excluded due to the absence of sum insured data.
Watu Credit excluded. Remaining Motorcycle subclasses are combined to improve credibility.
The channels “Other” and “Coinsurance” are excluded due to limited volume and heterogeneity.
For branch analysis, Eldoret, Nakuru, and Nanyuki are aggregated and treated as satellite branches to enhance statistical robustness.
Using these data features to segment the data, we see the historical performance of various segments below.
Observations
The portfolio has maintained steady growth over the years, driven mainly by Head Office, Motor Private, and the Bancassurance channel. However, this growth has been accompanied by a deterioration in the claim ratio.
Analysis of branch performance indicates that Kisumu and Mombasa branches exhibit higher volatility compared to Westlands, which remains stable and delivering decent results. Overall, head office drives the final results as it represents the largest proportion of business.
Analysis of business category shows that new business tends to underperform relative to the existing portfolio, for both Motor Private and Motor Commercial classes.
Analysis of channel performance indicates that the agency channel consistently underperforms compared to brokerage, which delivers the best results. Recent improvements in agency business are attributed to price modifications. Emerging risks include Motor Private bancassurance business, while broker channel continues to perform well under both Motor Commercial and Private.
Analysis of insured category shows that small clients underperform relative to all other categories under both classes.
Analysis of intermediary category indicates no significant differences across recorded performances.
Analysis of sub-class performance highlights that the online contracted taxis sub-class performed poorly, though recent improvements are noted, likely due to premium increases. The Motorcycle class sharply deteriorated in 2024, primarily due to the Greenwheels account. Another high-risk sub-class is Motor PSV Bus, which consistently records higher claim ratios. Motor Commercial overall performs better, mainly due to better pricing.
Two tables are shown in the subsequent sections showing the historical profitability for branches and intermediaries. Similar tables are available for a closer look into all other segment performances.
Branch profitability
Intermediary profitability
Given the significant premium differentiation across the market and the year-on-year variation in premium rates, the loss ratio is not a fully comparable measure of underlying risk experience.
Accordingly, subsequent analysis is based on loss per sum insured (losses incurred divided by total sum insured) to provide a more exposure-consistent metric.
Analysis of claims per unit of sum insured (SI) indicates that there is no significant difference in risk profile of policies written under motor commercial and motor private. Superior performance of motor commercial vehicle above motor private car is majorly due to pricing differences - we charge higher premium for motor commercial.
There is a strong correlation between premium rate and the observed claim ratio. Properly pricing the risk ensures even high-risk segments become profitable. This explains why Comprehensive Motor Commercial, has historically recorded better claim ratios than Motor Private.
In 2020 and 2021, the company expanded aggressively into the retail space, with the agency channel playing a key role. This graph shows the gradual increase in risk profile during this season, which eventually resulted in lower profitability levels.
Question: During which years were we able to adequately price for the risk?
Next Step: A statistical model will be fitted to explain rate_per_SI, providing a more objective, exposure-adjusted measure of risk than traditional loss ratio analysis.
Since multiple explanatory variables interact, their combined effect determines the final burning cost, which can subsequently be converted into a premium rate by applying an appropriate margin.
We fitted a linear model to estimate the additive contributions of various factors to the burning cost of Motor Commercial.
The intercept represents the baseline risk profile defined by:
The following factors have the largest impact on burning cost:
We fitted a linear model to estimate the additive contributions of various factors to the burning cost of Motor Private.
The intercept represents the baseline case with the following characteristics:
The following factors have the largest impact on burning cost for Motor Private:
Notes / Observations:
Bancassurance may appear as a key risk factor due to the NCBA Motor Private experience, which recorded a total premium with a corresponding claim ratio of above 100% between 2022 and 2023, despite charging fairly high premium rates.
Bancassurance primarily sells comprehensive policies, including Excess Protector, which may contribute to higher observed risk.
Broker policies, despite lower premium rates, often record superior claim ratios—worth further investigation.
All branches could borrow lessons from the Westlands branch underwriting approach.