Kenya Re eyes block chain technology to curb fraud

Kenya RE Managing Director Jadiah Mwarania.

Kenya’s Reinsurance is tapping into modern technology to eliminate cases of fraudulent claims. The reinsurer has incorporated block chain technology as a security measure to eradicate fraud.

Block chain technology is an automated process that is a cryptographically secured form of record-keeping, which makes verification of data easier.

According to surveys recently released by McKinsey, automation can reduce the cost of fraudulent claims by as much as 30 per cent.

The company seeks to expand into other countries as it eyes to cover more insurers against risks.

“Expansion to different markets and tapping into different segments is instrumental in unlocking the potential and overall business. To give more of a local context, Kenya Re has diversified its operations to different countries such as Zambia and Côte d’Ivoire, just to mention a few, in a bid to unlock the francophone sub-Saharan Africa market," said Kenya Re Managing Director, Mr Jadiah Mwarania.

"Growth into products such as Islamic insurance has put the corporation on the international map after the Corporation's Re-takaful window being selected twice as the best in Africa,” Mr Mwarania says.

Mwarania says that the reinsurer is keen to pursue product customisation for its clients to suit individual client needs. Tailor-made packages will also maintain the company’s business momentum.

"Technology implementation and innovation must stay in the heart of reinsures not only to easy and automate processes but to keep up with the ever changing trends,” he says.

Reinsurance companies help insurance companies against insolvency and help them stabilise against financial losses. A company that takes insurance from a reinsurance company pays premiums and the reinsurance firm is bound to offset part of the insured’s claims. This is principally an insurer passing on some of his responsibilities to another insurer.