Kenindia to curb motor insurance fraud with the help of artificial intelligence

With over 25% of Kenya’s insurance industry income fraudulently claimed, Kenindia Assurance has taken steps to curb the fraud by incorporating artificial intelligence in its motor insurance claim processes.

The insurer is utilizing artificial intelligence to fast track its claims resolutions through the use of anomaly detection, sentiment detection, text analytics and a self-service portal.

Kenindia Assurance, Deputy General Manager Ms. Joyce Mathenge says that motor insurance is the main contributor to insurance fraud and hence the need to develop mechanisms to lower their risks.

“With more Kenyans owing cars and motor insurance being mandatory, we find that having ineffective due diligence processes and a corruption culture usually leads to motor fraud. As a company, we have invested in artificial intelligence as well as continuously training our teams to enhance their abilities to detect motor fraud,” said Ms. Mathenge.

Ms. Mathenge added that Kenindia is looking at setting up a data centre for where customers’ insurance history will be keyed in with the aim of detecting motor insurance fraudsters and their methods. This will be in addition to the industries Integrated Motor Insurance Data System (IMIDS) through the Association of Kenya Insurers which has made it possible to track the insurance history and claims of all vehicles insured in the country.

Deloitte’s Insurance Outlook Report 2019/2020 East Africa showed that while motor private and medical business classes are the largest classes, they are also among the most loss-making businesses. The report urges insurers to explore other emerging business classes that have a potential for growth to diversify their business mix.

Over the years, the insurer has invested heavily in information technology to better their service delivery for their life, general and medical operations.

“Even as we look at ways to remain relevant in these competitive times while improving our customers experience, it is our vision that with the help of artificial intelligence, we will now be able to further shorten our claim processes, validate all claims and pay our customers the correct claims, faster,” concluded Ms. Mathenge.