Fraud a concern to insurers in Kenya

Oct 31, 2012

Insurance companies in Kenya are becoming increasingly concerned about fraud, an official has warned.

According to Stephen Githiga, managing director of First Assurance, dishonest claims are proving to be a big problem at the moment, as they are placing a heavy financial burden on cover providers, Capital FM reports.

He noted that fraudulent motor insurance claims are particularly common in the African nation right now, while many people are also falsely seeking compensation for the work done by a tradesman.

In addition, cover providers in Kenya are being put under pressure by a surge in the number of bank thefts in the last few months, Mr Githiga stated.

For instance, a robbery at Chase Bank in July this year led to it being awarded €1.2 million following an insurance claim.

Across the Kenyan insurance industry as a whole, payments to policyholders are expected to come to about €271 million in 2012, up from €234 million in 2011.