This archive report was first published on 26 October 2019.
Kenya's insurance industry is plagued by a significant problem: over 25% of its income is fraudulently claimed, resulting in heavy losses for insurers.
Kenindia Assurance, a leading insurer, has responded to this challenge by leveraging Artificial Intelligence (AI) to fast-track its motor insurance claim resolutions.
The insurer is utilizing AI-powered tools for anomaly detection, sentiment analysis, text analytics, and a self-service portal to streamline its claims process.
According to Joyce Mathenge, Deputy General Manager at Kenindia Assurance, motor insurance is the primary contributor to insurance fraud in Kenya.
“With more Kenyans owning cars and motor insurance being mandatory, we find that ineffective due diligence processes and a corruption culture often lead to motor fraud. We have invested in artificial intelligence and continuously trained our teams to enhance their abilities to detect motor fraud,” Mathenge said.
Kenindia Assurance is also exploring the establishment of a data centre to store customers' insurance history, aiming to detect and prevent motor insurance fraudsters.
The insurer is building on the Integrated Motor Insurance Data System (IMIDS) through the Association of Kenya Insurers, which enables the tracking of insurance history and claims for all vehicles in the country.
A Deloitte report from 2019/2020 highlighted that motor private and medical business classes are the largest and most loss-making classes in the industry.
Kenindia Assurance has invested heavily in information technology to improve its service delivery for life, general, and medical operations.
“With the help of artificial intelligence, we aim to shorten our claim processes, validate all claims, and pay our customers the correct claims faster,” Mathenge concluded.
