The insurance industry in Kenya has deepened its use of artificial intelligence (AI) in onboarding new customers, assessing risks, and managing claims in a shift that has cut the claims payment periods to as little as 30 days.
The Association of Kenya Insurers (AKI) said that the technology has helped insurers automate routine processes, enhancing fraud detection, and customer engagement to ensure genuine claims are paid out on time.
The development marks a shift in an industry that has long been characterised by heavy paperwork, delays in claims settlement, and customer complaints.
“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,” says AKI in the latest industry report.
AKI says several insurers have introduced AI-powered chatbots that provide instant responses to customer queries. The lobby says one such platform—working in collaboration with numerous healthcare providers across Kenya— has achieved a 500 percent increase in daily claims processing, with approval times now reduced to under 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,” said AKI.
The shift to paperless onboarding and claims handling marks a key development in an industry burdened by extensive paperwork and delays in claims assessment and payment. The move has helped cut costs and enhance customer experience.
Insurers are also integrating machine learning and AI into actuarial modelling and fraud detection. Fraud remains a growing concern in the Kenyan market, with the market estimating that nearly 30 percent of all claims received are fictitious.
Jubilee Holdings said it foiled fictitious insurance claims worth Sh400 million in the financial year ended December 2024 on the back of enriching its digital systems with AI capabilities.
Britam Holdings disclosed in its 2024 annual report that it has started using AI to improve risk identification, assessment, and loss mitigation processes, allowing it to be “more accurate for casting and proactive risk management.”
Many insurers have been facing a delicate balance between weeding out fictitious claims and setting genuine ones on time to avoid eroding their profitability and driving up costs.
AI-powered analytics are able to sift through huge amounts of data to identify anomalies and flag suspicious patterns, helping insurers prevent fraud 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,” said AKI.
According to AKI, some insurers are using voice recognition technologies for identity verification. They are also using chatbots and virtual assistants for instant support around the clock. Advanced analytics tools are also guiding customer service agents to offer faster, accurate, and more personalised interactions.
Some insurers are transitioning toward branchless business models to reduce administrative costs and enhance customer engagement. AKI notes that these fully digital models use automated onboarding, digital claims processing, and smart document recognition for seamless extraction and verification of customers' data.
AKI expects the uptake of AI among insurers to grow further, given that there are those exploring further AI-powered products to start offering personalised covers.
“Through deep data analysis, insurers can now better understand customer behaviours and preferences—allowing them to customize offerings, anticipate needs, and ultimately improve service quality and satisfaction,” said AKI.
The Insurance Regulatory Authority (IRA) has been supportive of innovations in the insurance sector by allowing initiatives such as the Financial Sector Deepening-backed BimaLab—a sandbox that allows insurers and insurtech start-ups to test innovative technologies in controlled environments.
Kenyan insurers’ move is aligned with the KPMG 2025 Africa CEO Outlook report, which found that 41 percent of chief executives consider AI integration into business workflows as their top investment priority.Â
