This archive report was first published on 3 September 2019.
Kenya's insurance industry is taking a significant step to combat fraud by introducing a virtual motor insurance certificate.
According to a notice published by the Association of Kenya Insurers on September 3, 2019, the virtual certificate will be issued in two phases, with the first phase targeting motorcycles and taking effect immediately.
The virtual certificate will allow insurance firms to issue certificates to clients via digital platforms, making it easier for customers to verify the status of their motor insurance through the AKI verification App available on both Apple and Google stores.
Adoption of virtual technology is expected to seal loopholes for fraud through fake certificates and stolen insurance certificates, which have often been used to exploit loopholes in the system.
Insurance companies are making it easier for customers to buy insurance products, but this has created opportunities for fraudsters to exploit the system.
However, all other processes such as validation and claims processing will not be affected by the transition, including the motor insurance certificate appearance and details.
Full transition to the virtual insurance certificate is expected to be complete by mid-next year.
