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Walter Muchinguri Assistant Business Editor
Short-term insurers recorded a marginal 2,92 percent increase in the volume of business written during the half-year ended June 30, 2015 with total Gross Premium Written (GPW) rising to $120,31 million from $116,89 million for the comparable period last year.

The growth in total GPW was mainly attributable to significant increases in business written under accident insurance as well as bonds/guarantees which amounted to $4,52 million and $0,98 million respectively, the Insurance and Pension Commission said in its latest non-life insurance report.

Total profit after tax for non-life insurers was, however, 12,05 percent down to $5,23 million for the period from $5,95 million reported for the comparative period in 2014.

“The decrease in total profit after tax was mainly attributable to an upsurge in net incurred claims coupled with increasing operational costs,” IPEC said in its report.

Motor and fire insurance business classes remained the largest sources of business in terms of GPW.

The two business classes accounted for a total of 62,14 percent of total GPW during the six months ended 30 June 2015 reflecting a marginal decrease from 64,67 percent reported for the comparative period in 2014.

The number of registered players, including insurance agents, increased from 585 as at March 31, 2015 to 591 during the period under review.

In terms of compliance only four insurers Excellence Insurance Company, Cell Insurance Company, Tristar Insurance Company and Quality Insurance Company were not compliant with the minimum capital requirement of $1,5 million.

Excellence Insurance Company was suspended from initiating and renewing insurance business during the period under review.

“The Commission urges all insurance companies to move towards compliance with minimum capital requirements that will be determined using Circular 1 of 2014 to avoid regulatory action which may have adverse effects on their operations,” IPEC said.

Total assets for the non-life insurance sector decreased 8,44 percent from $193,66 million as at March 31, 2015 to $177,31 million during the period under review owing to a decrease in premium debtors.

The premium receivable fell to $36,53 million during the period under review from $47,14 million as at March 31, 2015.

“The significant decrease in premium debtors, without a corresponding and compensating increase in other asset classes, such as cash and investments, imply that significant premium receivable were written off or the cash collected from the same was applied directly to meeting expenses such as claims and management expenses.

“The decrease in total assets between the first quarter and the second quarter is in tandem with the pattern that has been observed over the years since 2009 and is expected to persist until the end of the third quarter,” IPEC said.