Players in Kenya’s insurance industry are being urged to embrace artificial intelligence (AI) to accelerate claims processing and curb fraud, amid growing concerns over delayed settlements and rising cases of fraudulent claims. The call comes at a time when customer trust and operational efficiency are being tested by persistent challenges in the sector.
Data from the Insurance Regulatory Authority (IRA) shows that insurers paid out more than KSh80 billion in claims in the third quarter of 2025 alone, underscoring the industry’s critical role in cushioning individuals and businesses against loss. Yet delays in settlement and fraud-related losses remain a major concern, inflating costs and slowing service delivery. Complaints have also been rising, with 532 cases lodged in Q3 2025 compared to 423 in Q2. Of these, 82 per cent targeted general insurers, while 18 per cent were directed at long-term insurers.
Speaking during the inaugural Minet Kenya Claims Conference 2026, Minet Associate General Manager for Risk Solutions, Patrick Oromo, stressed the importance of technology in transforming claims management.
ALSO READ:
KRA defends proposal to expand VAT coverage as beneficial to small businesses
“Today, paper is not a mandatory thing in the process of how claims are handled. Therefore, the speed of settlement, ease of processing information, ease of lodging and paying out a claim, is of utmost importance. AI is the future, not just for the insurance industry but also for individual customers,” he said.
Industry stakeholders at the conference noted that the claims environment is becoming increasingly complex, shaped by both global and local factors. Climate-related disasters and geopolitical tensions, including recent events in the Middle East, are disrupting supply chains and affecting marine insurance and commodity pricing. At the same time, cyber incidents are escalating, exposing insurers to new risks, while inflation continues to drive up the cost of repairs and replacements.
Fraud remains a persistent challenge. In 2024, the Insurance Fraud Investigation Unit (IFIU) detected 183 cases of fraud, with motor insurance claims and theft by agents accounting for the largest share; 87 cases (33 per cent) and 47 cases (23.7 per cent), respectively. Cyber threats are also surging. According to the Communications Authority, Kenyan organisations recorded at least 4.56 billion cyber threat incidents in Q3 2025, representing a staggering 441.27 per cent increase.
ALSO READ:
NCPB to buy 4.5Million maize bags as Senate Committee reviews its food security and grain stocks
These pressures are directly impacting how claims are assessed and settled, forcing insurers to rethink traditional approaches. The adoption of AI and other digital tools is being positioned as a solution to streamline processes, reduce fraud, and restore confidence among policyholders.
By Masaki Enock
Get more stories from our website: Sacco Review.
For comments and clarifications, write to: Saccoreview@
Kindly follow us via our social media pages on Facebook: Sacco Review Newspaper for timely updates
Stay ahead of the pack! Grab the latest Sacco Review newspaper!
