This archive report was first published on 20 November 2019.
On November 20, 2019, the Association of Kenya Insurers (AKI) introduced a virtual motor insurance certificate to combat insurance-related fraud in the industry.
The digitization of insurance certificates aims to break an elaborate motor vehicle fraud scheme that has been robbing the industry millions of shillings through fake multiple claims.
By issuing virtual certificates, insurance companies can ensure that only one motor insurance certificate is issued per vehicle, eliminating cases of double insurance, fake certificates, and stolen insurance certificates.
The virtual certificates will also save insurance companies the cost of physically delivering the certificates to their customers, as they will receive the virtual motor insurance certificate on a digital platform.
According to Vinod Bharatan, Chief Executive Officer of APA Insurance, the need to use technology is essential to combating insurance fraud, as fraudsters are becoming increasingly sophisticated.
"The future of tackling insurance fraud is in using new technologies to thoroughly look at ways to recognize and predict emerging fraud trends and patterns and take preventative steps," Bharatan said.
He emphasized that the fight against insurance fraud requires a collaborative approach between all stakeholders.
