Jubilee Insurance is betting on investment in new fraud detection systems to tame an upsurge in dubious claims.
Regional Chief Executive Julius Kipng’etich said yesterday fraudulent claims had hit record highs, especially in the medical and private motor segments, eating into the underwriter’s profits in recent years.
“Fraud is very serious, especially in the medical and private motor vehicle segments. Apart from working with IRA (Insurance Regulatory Authority), we have formed an integrated database with other insurance firms where we share information that helps us combat fraudsters,” said Dr Kipng’etich when the firm launched three mobile apps for its customers and agents in Nairobi.
The JubiAgent Medical, JubiAgent Motor, and JubiCare apps will enable users to gain access to self-service and e-commerce functionalities via their mobile phones.
According to data from the Insurance Regulatory Authority, Jubilee paid 213 liability claims, which are claims paid to a third party, 500,208 non-liability claims, and 7,936 claims in the long-term insurance business.
Kipng’etich said the firm was working with the industry regulator and the newly established Police Insurance Investigations Unit to nab both employees and clients perpetrating fraud.
In the six months ending June 30, 2017, the underwriter’s profits rose by 18 per cent despite the upsurge in claims.