The recent attack on a hotel and business complex in Nairobi will see Kenya Reinsurance Corporation (Kenya Re) make payouts to two underwriters, the listed firm has said.
The re-insurer said it had started talks with the unnamed insurers but the losses were yet to be assessed.
“It is too early for quantification of losses,” said chief executive officer Jadiah Mwarania. “We have gotten notification from only two insurers.”
Kenya Re, which offers cover to more than 160 insurance companies spread out in over 45 countries in Africa, the Middle East and Asia, saw its gross written premiums go up to Sh7.5 billion last year, slightly higher than the Sh7.09 billion reported in 2016.
Security analysts have warned that businesses need to understand the risk posed by terrorist attacks to their people, property and technology.
The affected Riverside address hosts hospitality, media, retail and other businesses, including the high-end dusitD2 Hotel where international conferences are held.
The businesses remain closed days after the incident.
It is projected that the risk of terrorist attacks is likely to push up premiums for businesses and players buying insurance for terror-related risks compared to last year, analysts, brokers and insurers said earlier.
The attack at the 14 Riverside complex claimed the lives of 21 people while dozens others were injured in the attack linked to the Somalia-based Al-Shabaab terrorist group.
Mr Deepak Dave, a risk management expert with Nairobi-based Riverside Capital, projected an uptick of development of terror-focused insurance products in the wake of the Riverside raid.
“They will be hugely expensive given reinsurance will be almost impossible until our general security situation improves dramatically,” he said.
“The government will need to play a big role to get the market off the ground.”
Mayfair Insurance paid a total of Sh1.01 billion to Nakumatt Supermarkets, now under administration, for losses suffered at one of its branches following the terrorist attack at the Westgate Mall in September 2013.
Former Nakumatt managing director Atul Shah said the retailer’s losses were in excess of Sh2 billion in the attack that razed its hypermarket at the mall. The attack cost another insurer, ATI, Sh128.5 million ($1.5 million) arising from three claims.