Member Companies are concerned with the prevailing motor rates, which have been eroded to uneconomic levels. Motor contributes almost a half of the general insurance premium. For the industry to realize meaningful growth, motor rates should not be eroded further but improved. To address the problem of low premium rates, AKI has engaged Actuarial Services Ltd to assist the industry in determining appropriate motor rates.
The rates will be determined on risk factors like:

• Age and gender of drivers;
• Type of insurance cover;
• Regions and zones of operation;
• Type of vehicle
• Loss ratios, among other risk factors.

The exercise is expected to be finalised before the end of March next year