Regional based re-insurer Kenya-Re has projected a Ksh.1 billion revenue hit from increased claims and rebates on premiums as businesses globally seek to negotiate their contracts with underwriters and re-insurers.

According to Kenya Re Managing Director  Mr. Jadiah Mwarania, the five per cent hit will be ‘the worst case scenario’ for the corporation in the wake of anticipated business losses occasioned by the pandemic.

“At the moment, we have over 265 re-insurance contracts spread across over 70 countries in diverse segments such as medical, trade credit, lawyers’ liability fees among others. We expect the business to shrink in tandem with the lower GDP growth as projected by the government at the rate of 2.6 percent this year,” he said.

“On our end, we estimate the industry growth to shrink by at least 2 to 3 per cent.” Read more