Insurers urged to adopt AI to speed claims, curb fraud

NAIROBI, Kenya, Mar 25 – Insurance firms have been urged to adopt artificial intelligence (AI) and digital tools to speed up claims processing and tackle fraud, as pressures mount across the sector.

Data from the Insurance Regulatory Authority (IRA) shows the industry paid over Sh80 billion in claims in the third quarter of 2025, underlining its critical role in supporting individuals and businesses.

However, rising complaints and fraud-related losses continue to weigh on efficiency. The IRA recorded 532 complaints in Q3 2025, up from 423 in Q2, with 82 percent linked to general insurance.

Speaking at the inaugural Minet Kenya Claims Conference 2026, Patrick Oromo said technology is key to improving service delivery.

“AI is the future, not just for the insurance industry but also for individual customers,” he said.

Industry data indicates fraudulent claims account for up to 10–15 percent of total claims costs in some segments, highlighting the need for better detection systems.

At the same time, risks facing insurers are becoming more complex, driven by climate-related events, geopolitical tensions affecting supply chains, and rising cyber threats.

According to the Communications Authority of Kenya, over 4.56 billion cyber threat incidents targeting Kenyan organisations were recorded in Q3 2025, a sharp increase from previous periods.

Experts say adopting AI, predictive analytics and digital claims platforms can help insurers process claims faster, improve fraud detection and enhance transparency.

However, Oromo noted that technology should complement human judgment.

“Claims management remains a people-centred function,” he said.

IRA Market Conduct Director Anne Chelagat said the regulator is also pushing reforms to improve customer outcomes.

“We have developed a Treating Customers Fairly framework that provides a clear pathway for how customers should be treated throughout their journey,” she said.

Stakeholders say combining advanced technology with human expertise will be critical in building trust and improving efficiency in Kenya’s insurance sector.