Regional underwriter Kenindia Assurance will incorporate Artificial Intelligence (AI) into its operations to nab clients who make fraudulent motor insurance claims.
The firm says it has invested heavily in the technology as well as continuous training of its staff in order to enhance their ability to detect motor fraud, which the insurer says is the leading category targeted by swindlers.
“With more Kenyans owning cars and motor insurance being mandatory, we find that having ineffective due diligence processes and a corruption culture usually leads to motor fraud,” Kenindia Assurance Deputy General Manager Joyce Mathenge said.
The company is also looking to set up its own data center that will contain customers’ insurance history.
“This will be in addition to the industry’s Integrated Motor Insurance Data System (IMIDS) through the Association of Kenya Insurers which has made it possible to track the claims history of all vehicles insured in the country,” she added.
The insurer will use AI to fast track claims settlement through the use of anomaly detection, sentiment detection, and text analytics.
The move comes at a time when local underwriters are grappling with fraudulent claims that have eaten into the firms’ bottom line. The Insurance Regulatory Authority (IRA) said it foiled fraud incidences worth Sh310.48 million last year, mostly from motor vehicle owners and insurance agents.
The regulator had noted that fraud by agents engaged by underwriters was the most common type registered. IRA’s fraud investigation unit received and detected 91 cases, down from 168 the previous year.