Kenyan underwriters should embrace ICT to boost efficiency and reduce cases of fraud.
According to the latest annual insurance industry report by the Association of Kenya Insurers, integrated IT systems could help reduce loses attributed to fraud.
Insurance penetration in Kenya at 2.4 percent is still low even though it is the highest level in East Africa with Tanzania at 1.87 percent, Rwanda at 1.7 percent and Uganda at 1 percent.
However, insurance remains crucial to the economy as it offers financial security, encourages direct and indirect investments, and mobilizes savings.
Get breaking news on your Mobile as-it-happens. SMS ‘NEWS’ to 20153
According to the 2018 insurance report by the Association of Kenya Insurers, the insurance industry continues to face the risk of money laundering and terrorism financing through various channels such as covering illegal or fraudulently acquired property, providing covers to organizations associated with terrorism and overpayment of premiums funded by proceeds obtained through illegal means.
The Association of Kenya Insurers says this can be remedied by increased investments in ICT integrated systems.
The Association of Kenya Insurers wants underwriters to embrace the use of the block-chain technology in client processes, issue of insurance certificates and addressing fraud.
The Association is also calling for creation and adoption of stringent insurance regulations to increase supervision of brokerage and promotion of online sale of insurance policies, adoption of connected devices as telematics and wearables for health insurance, car and home insurance.
The annual report further calls for innovation hubs to incubate InsurTech startups to promote ICT innovations.
The association believes increasing the use of virtual reality for marketing of products, customer interactions, claims management and trainings could help increase uptake of insurance and grow the industry.
Already insurance companies in developed nations such as the US are using drone services to inspect claims.
