The CIC Insurance Group Limited has this year paid over Sh1.7billion in claims, most of it related to Covid-19 with medical, funeral and loans cover topping the list.
This came as insurance claims more than tripled in the last two years due to the effects of the pandemic.
According to CIC Insurance CEO Patrick Nyaga, the pandemic had adverse effects on the sector.
Nyaga noted that between January and September this year, the insurer that covers co-operatives movements had paid claims totaling over Sh1.7 billion.
“The pandemic led to the loss of lives and unpaid loans and we moved in to cover this as part of our contract with the saccos,” he said.
He spoke during the CIC Insurance Group Limited Annual Cooperative Summit in Great Rift Valley Lodge in Naivasha, where close to 200 CEO of co-operatives attended.
Addressing the press at the sidelines of the meeting, Nyaga noted that the pandemic was not yet over, adding that they would continue to support co-operatives affected.
“We are developing new products that are suitable for our clients and we are targeting cover for persons who are over 60 years in age,” he said.
The CEO of Tembo Sacco, Lydia Mungai, noted that hundreds of their members struggled to service loans while others lost lives due to the pandemic.
“In the last two years, the number of claims that we presented to CIC went up by five times due to the number of deaths and unpaid loans caused by the pandemic,” she said.
Mungai noted that the outbreak was a game-changer and challenged families that had not taken medical covers to learn from the pandemic.
“The medical cover came in handy for members affected by Covid-19 and we are glad that the sector is on the recovery trail,” she said.
This was echoed by the CEO Kenya National Police Service Sacco Solomon Atsiaya who said cases of loan default shot up during the two-year period.
“The sector suffered massive losses that were worsened by deaths of our members but we are glad CIC honored our claims that included paying pending loans and funeral expenses,” he said.
