Kenya's insurers urged to adopt AI to speed claims and cut fraud
Kenya's insurance sector faces mounting pressure to deploy artificial intelligence in claims processing and fraud detection as complaints rise and settlement delays persist. Industry leaders made the call at the inaugural Minet Kenya Claims Conference 2026, citing both operational inefficiency and rising customer dissatisfaction.
Insurers paid out more than KSh80 billion in claims in the third quarter of 2025 alone, according to the Insurance Regulatory Authority (IRA). Yet the sector struggles with delayed settlements and fraud losses that inflate costs and slow service delivery.
Customer complaints jumped to 532 cases in Q3 2025 from 423 in Q2. General insurers accounted for 82 per cent of complaints, with the remainder directed at long-term insurers.
Patrick Oromo, Minet Associate General Manager for Risk Solutions, said paper-based claims handling is obsolete. "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.
Fraud and cyber threats escalate
The Insurance Fraud Investigation Unit detected 183 fraud cases in 2024. Motor insurance claims accounted for 33 per cent, while theft by agents represented 23.7 per cent of cases.
Cyber threats are surging faster. Kenyan organisations recorded at least 4.56 billion cyber threat incidents in Q3 2025, a 441.27 per cent increase, according to the Communications Authority.
External pressures reshape claims environment
Climate-related disasters and geopolitical tensions are disrupting supply chains and affecting marine insurance and commodity pricing. Inflation continues to drive up repair and replacement costs, pressuring claims assessments across the board.
These factors are forcing insurers to rethink traditional approaches. AI for Insurance and AI Agents & Automation are being positioned as solutions to streamline processes, reduce fraud, and restore confidence among policyholders.
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