Kenya’s insurance industry fast-tracks claims with AI adoption

Kenya’s insurance sector is rapidly embracing artificial intelligence (AI) to make customer services faster, reduce delays, and streamline claims payments.

The adoption of AI is enabling insurers to process claims in just 30 to 60 days, a drastic improvement over the months-long delays that were once common.

According to the Association of Kenya Insurers (AKI), AI is helping companies automate routine tasks, detect fraud more effectively, and interact with customers more efficiently.

“The insurance industry in Kenya is increasingly adopting automation and AI to enhance operational efficiency and customer experience. Automating routine processes such as client onboarding, claims submission, and adjudication has streamlined policy management and improved access to insurance services,” the report said.

Several insurers are now deploying AI-driven chatbots that provide instant responses to client questions.

One platform, working alongside multiple healthcare providers, has boosted daily claims processing by 500 per cent, with approvals taking less than a minute.

“This innovation has significantly shortened payout turnaround times to between 30 and 60 days, compared to the lengthy delays—often several months to a year—experienced under traditional systems,” AKI said. Paperless onboarding and digital claims processing have also reduced operational costs while enhancing customer satisfaction.

Fraud prevention is a key focus, as estimates suggest that about 30 per cent of claims in Kenya are fictitious.

Jubilee Holdings revealed it blocked fraudulent claims worth Sh400 million in 2024 by leveraging AI in its digital systems.

Britam Holdings reported that AI is helping improve risk evaluation, loss prevention, and forecasting, allowing the company to “be more accurate for casting and proactive risk management.”

Insurers face the challenge of quickly approving genuine claims while preventing fraud to protect their financial stability.

AI analytics examine large datasets to spot unusual patterns and flag suspicious activity before losses occur.

“With fraudulent claims posing a growing challenge in the Kenyan market, AI tools are helping identify and prevent suspicious activities, thereby safeguarding industry profitability,” AKI said.

Voice recognition is being used for identity verification, while chatbots and virtual assistants provide 24/7 support.

Analytics tools also guide customer service teams to deliver faster and more personalised solutions.

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Some insurers are moving to fully digital models that rely on automated onboarding, smart document recognition, and paperless claims management to reduce costs and improve engagement.

AKI predicts further growth in AI adoption, with insurers exploring innovative AI-driven products to offer tailored insurance covers.

“Through deep data analysis, insurers can now better understand customer behaviours and preferences,” the report noted, signalling a future of faster, more customer-focused insurance services.