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Directline, Amaco, Trident attract most customer complaints
The wreckage of a matatu involved in an accident. Directline, Amaco and Trident, which have a strong presence in public transport insurance, received the highest number of complaints from their aggrieved customers.
Three insurance firms – Directline, Amaco and Trident – received the highest number of complaints from their aggrieved customers in the three months to September 2024, new data from the Insurance Regulatory Authority (IRA) has revealed.
The industry report shows that the three insurers accounted for nearly half of the 357 complaints made against more than 20 companies in the quarter to September 2024, relating to general insurance business.
The IRA received 511 complaints in the three months, of which 69.9 percent related to general insurance business and 30.1 percent were made against long-term insurers.
“Over the period under review 266 (74.5 percent) complaints against general insurers were resolved, while 140 (90.9 percent) complaints against long-term insurers were resolved,” the IRA said.
However, the majority of the complaints about general insurance business were directed at the three insurers, pointing to their strained relationships with customers despite their focus on sensitive business segments, mainly the public transport sector.
Directline, which is linked to businessman Samuel Kamau (SK) Macharia, received 62 complaints during the period, while Amaco and Trident attracted 50 complaints each, the IRA report shows.
Together, the three insurers accounted for 45.4 percent of the 357 complaints on general insurers in the three months.
Of the 62 complaints against Directline, 48 had been resolved by the end of September and 14 remained unresolved.
The complaints against Directline come amid strained relations within its ownership structures, which have played out in the public in recent months, causing friction that on several occasions prompted the intervention of the IRA.
Directline has a large share of business within Kenya’s matatu sector, where the majority of operators are insured with the company.
Amaco, which is partly owned by President William Ruto’s family and associates, had 50 complaints, of which 39 remained unresolved at the end of September.
Trident, which also has a strong presence in the public transport sector, also had 50 complaints, of which three remained unresolved at the end of the quarter under review, the IRA reported.
Other insurers with high complaints during the three months were Monarch (21), Kenya Orient (20), GA General (14), APA (13), Madison (12), Kenyan Alliance and Old Mutual General (10 each).
During the quarter, the IRA also reported 55 cases of insurance fraud, mostly involving fraudulent accident, death and medical claims.
“During Q3 2024, 55 insurance fraud cases were reported to the Insurance Fraud Investigation Unit (IFIU). The number of fraud cases reported in each month of Q3 2024 was 31 in July, 8 in August, and 15 in September,” IRA said.
