Business

Invesco, Amaco top insurers with frustrated customers

Invesco, Amaco top insurers with frustrated customers
  • General insurers were the major culprits, accounting for 74 per cent of the complaints.
  • Invesco and Amaco had 181 and 155 cases respectively, making them the insurers with the highest number of customer complaints in the sector with 54 firms.
  • The two are majorly into the insurance of public, private and commercial vehicles.

Insurance firms Invesco Assurance and Africa Merchant Assurance Company (Amaco) closed the year with the highest cases of customer complaints, sector statistics show, citing delayed settlement as a major concern.

Insurance Regulatory Authority (IRA) says it received 2,233 complaints last year compared with 2,126 registered the previous year with many customers citing frustration over the delayed settlement of claims by the insurers.

General insurers were the major culprits, accounting for 74 per cent of the complaints whereas 26 per cent were made against long term insurers.

Invesco and Amaco had 181 and 155 cases respectively, making them the insurers with the highest number of customer complaints in the sector with 54 firms.

The two are majorly into the insurance of public, private and commercial vehicles.

Last year, 99 per cent of Invesco’s Sh1.53 billion premiums came from insuring vehicles while for Amaco, 62.6 per cent of its Sh2.17 billion premiums were also from these classes of insurance.

The IRA settlement report for the second quarter of 2019 shows unsettled claims for the two insurers were piling up.

Invesco closed June with 4,787 outstanding claims, having settled only 304 during the period.

Those of Amaco piled to 1,705, having settled 169 during the quarter.

Also with complaints above 100 were Kenya Orient and Monarch with 151 and 104 cases respectively.

Pioneer, Resolution, ICEA and AAR had the least number of customer complaints.

“The authority receives and handles complaints lodged against insurers by policyholders and beneficiaries — the complaints comprised of delayed settlement, declined claims, erroneous deductions and unsatisfactory compensation,” the IRA said.

Of the total industry complaints, 1,304 relates to delayed compensation while 469 were due to insurers declining to settle the claim.

A further 218 were due to erroneous deductions while 189 were on customers not satisfied with the amount of compensation awarded.

The IRA statistics further show that general insurers are lagging in resolving customer issues.

Last year, 944 complaints or 57 per cent of the cases against general insurers were resolved while 472 (81 per cent) complaints against long term insurers were resolved.