Using technology to curb fraud is a fast growing phenomenon in Kenya that’s almost being utilized by all sectors with fraud related risks to curb such risks. It’s a segment that just recently welcomed a new body – the association of Kenya Insurers who have been keen to eliminate fraud in the industry. With an expected overwhelming growth in Kenya’s insurance sector that continue to introduce new products that tie-up or exceed other segments in the financial services industry, the sector has equally experienced an increase in fraud related issues.
Globally, the insurance sector is amongst areas with impressive growth owing to increased uptake by the middle class. Its therefore no surprise that the sector has become equally vulnerable to fraudsters that have compelled the likes of the Association of Kenya Insurer’s (AKI) to explore technological remedies – hence the virtual motor insurance certificate.
Although insurance related risks are not directly compared to other forms of crime since technically no one is harmed, they’re real and needed an approach. Fraudulent claims range from making a false claim or the exaggeration of a genuine claim by a few thousand shillings and these is mostly perceived as the proverbial drop in the ocean of the insurance companies’ finances. But even so, the reality is very different. While most claims are genuine, an ever increasing number of people make fraudulent and exaggerated claims.
The association of Kenya insurer’s (AKI) unveiled a virtual motor insurance certificate to curb insurance-related fraud in the industry. The digitization of the insurance certificates intents to eliminate motor vehicle fraud related incidences that has been denying the industry millions of shillings through fake multiple claims. The development intents to eliminate motor insurance fraud by ensuring that only one motor insurance certificate is issued per vehicle. Cases of double insurance, fake certificates and stolen insurance certificates will be eliminated. Notwithstanding, the virtual certificates will consequently save the insurance industry millions of shillings. Insurance companies will no longer have to physically deliver the certificates to their customers as they will receive the virtual motor insurance certificate on a digital platform.