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The sector’s umbrella body plans to use the data to compile a comprehensive list of businesses and individuals affected. This will then be shared with the government and “other interested players”.

“We will develop a data template model once we have received all the needed information from all the insurance companies,” AKI’s executive director Tom Gichuhi told Business Beat last week.

“Currently, we have between 15 and 20 insurance companies offering terrorism cover. However, not many consumers have embraced the product; they are only rushing to seek payment when terrorists attack their properties.”

However, the insurance companies we contacted to follow up on insurance claims after the Westgate terror attack said there had been an increase in the uptake of terrorism cover.

Intra Africa Assurance Company said they had registered a 20 per cent increase in new clients. They have also began to pay out claims, though only four clients have sought compensation.

The attack at the upscale mall left at least 67 people dead and led to a yet-to-be-quantified loss of property. The mall itself was insured through UK’s Lloyd’s market for about Sh6.6 billion.

For claims being presented by clients who were unaware that they could insure their property against terrorism, insurance companies are considering applying the ex-gratia principle, which would provide a voluntary payout that would assist them resume their businesses.

But even then, claims for compensation after the attack have been at a mere trickle.

Intra Africa Assurance Principal Secretary Mike Muriithi confirmed his firm has received four claims from clients who had taken up terrorism cover and whose vehicles were destroyed when the roof of the mall caved in.

Affected clients

Two of the clients have received Sh3.2 million and Sh1.9 million. Another client is about to be paid while the other is yet to file claim documents.

“We have been responsive to our clients and we are happy that more than two months down the line, and after the affected clients have filed their claims as per insurance cover prescriptions, we have managed to pay two of the four claims,” he said.

UAP Insurance Managing Director James Wambugu said his company had seven clients affected during the attack, with their total claims estimated to be Sh70 million.  

“Three of them are large corporates who lost merchandise and the other four are small businesses and individuals who lost business stock, a vehicle and one hospitalisation case. Two of the large corporates had terrorism cover and we are finalising their claims,” he said.

Wambugu added that due to delays in making the Westgate site accessible soon after the attack, insurance loss adjusters had been unable to quantify the amounts payable or assess the damage.

“We hope to conclude the process of assessment quickly, so that our clients can receive compensation and move on like everyone else,” he said.

The costs

He added that since the Westgate attack, his firm has received a lot of enquiries on terrorism cover. 

“The cost of terrorism cover for most risks is quite low, which customers do not seem to appreciate. For example, if a client is paying 4 per cent of the value of a vehicle, he or she only needs to add 0.25 per cent for terrorism cover. This makes it the cheapest product in the industry.”

He added that even individuals with other types of cover, such as personal accident, can widen itto take up terrorism insurance.

AMACO Insurance Company Managing Director Jonah Tomno has also seen an increase in the uptake of terrorism cover.

“It is picking up fast, owing to the realities in the market,” he said.

CIC General Insurance Managing Director Kenneth Kimani said his company has settled one claim of Sh1 million for a client whose vehicle was destroyed during the attack.  Two other cases, he said, will be considered later as they did not have terrorism cover.

“Demand for terrorism cover has gone up by 10 per cent in the last two months, and we expect more customers will continue insuring their businesses against this risk,” he said.

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