As insurers operating in Africa embed artificial intelligence (AI) in their underwriting processes, faster claims processing and tighter fraud control are among the first visible benefits in markets such as Kenya, even as the technology’s broader potential continues to evolve.
Latest disclosures in the Kenyan market show that AI is no longer experimental in insurance but it is already reshaping core workflows such as underwriting, claims management, customer service and distribution.
For many insurers the first clear benefits are to do with busting fraud and speeding up claims processing for genuine customers. Jubilee Holdings, which is one of the top insurers in Kenya, said it averted KES1.28 billion losses from fictitious claims last year, nearly three times the prior year’s figure as it deployed AI to curb fraud.
The insurer, which has operations in Kenya, Uganda, Tanzania and Burundi, said that of the KES1.28 billion (US$9.87 million) in frustrated fraud, KES750 million (US$5.78 million) was identified through AI-driven claims adjudication and analytics-based fraud detection tools. The insurer says it deployed Curacel—an AI-enabled system supporting clinical claims adjudication.
“Fraud risk remains elevated across the region, with increasingly sophisticated typologies observed across the insurance value chain, including identity theft, impersonation, document forgery, exaggerated claims, medical billing fraud and staged accidents,” said the insurer.
“Jubilee Holdings maintains dedicated forensic capability and fraud detection mechanisms designed to identify, investigate and respond to fraud risks, supported by analytics dashboards and structured escalation processes.”
The shift toward AI-driven underwriting and claims processing is emerging as a key tool in insurance fraud control in a sector where industry estimates put fraud prevalent at nearly a fifth of total claims.
Another insurer to book savings related to AI use was Old Mutual General Insurance, which said its investment in AI helped save about KES400 million last year by streamlining routine tasks and flagging fictitious claims.
Japheth Ogalloh, managing director of Old Mutual General Insurance, explained that using AI has allowed it to cut paperwork in the claims management process, lowering operational costs and improving fraud detection by analysing patterns in the usually data-heavy claim forms.
“We are relying on AI to reduce areas of revenue leakages and also detect fraud patterns that were initially difficult to catch. Last year, we saw a saving of almost KES400 million that is directly attributed to AI tools adjudication,” said Ogalloh.
“The savings were a mix of the efficiencies we got in our processes as well as the fraudulent claims that were detected along the value chain. The AI use also improved customer experience and engagement by supporting a quicker claims management process.”
AI has helped many insurers in striking a balance between weeding out fictitious claims and setting genuine ones on time. A McKinsey & Company report released last year said the best-in-class insurers on AI adoption are seeing 20% to 40% reductions in costs for onboarding new customers, along with up to five percent improvements in claims accuracy.
Britam Holdings said it is committed to continuously strengthening its risk management framework to address evolving risks, regulatory requirements, and stakeholder expectations. Part of its focus in 2026 is using data analytics and AI to drive innovation.
“Our focus will be on enhancing risk analytics through advanced data analytics and artificial intelligence tools, as well as achieving full automation of risk management processes using our existing system,” said Britam.
South Africa’s Sanlam Group says in its latest annual report that one of the board’s areas of focus for 2026 is to develop and implement a formal AI governance framework to ensure ethical AI use and robust data management. The firm last year appointed Theo Mabaso as the group chief technology and AI officer.
Documenting the early gains, Sanlam says AI voice agents have reduced glass‑claims call times from seven minutes to two minutes, offering a boost to customers. However, the insurer is also alert to the challenges that come with AI use including biases.
“As AI becomes embedded in key business processes, Sanlam must manage ethical, governance and regulatory risks, including model bias, data quality weaknesses, transparency challenges and the risk of deploying AI use cases without proven viability,” said Sanlam.
Paul Hanratty, group chief executive officer at Sanlam said empowering people through technology remains central to sustaining the firm’s competitive advantage, adding that AI will transform insurance in a big way.
“The modernisation of our systems and data capabilities, together with the accelerated adoption of AI, are reshaping how we operate. We believe AI will transform our industry as profoundly as the internet did,” said Hanratty.
The group summarised the impact of AI on some of the client-facing operations as follows:
- AI voice agents reducing glass claims call times from seven minutes to two minutes
- GenAI handling 10% of life service WhatsApp chats, enabling agents to manage up to five chats simultaneously while maintaining high client satisfaction.
- At Santam, the genAI chatbot for agri-underwriting reducing support calls from six minutes to one minute, and risk engineer consultation from 32 minutes to 10 minutes
- In Sanlam Corporate, AI and automation radically reducing turnaround time for claims (30 to 8 days) and retiree quotes (30 hours to 15 minutes)
The place of AI in the insurance industry featured prominently in a recent industry discussion that brought together underwriters, brokers, insurtech founders and technology providers in Kenya, all converging on a common theme: AI use cases in Insurance.
The participants agreed that AI is no longer experimental in insurance but it is already reshaping core workflows such as underwriting, claims management, customer service and distribution.
‘AI presents greater opportunities for us as an industry in terms of how we do things and make decisions, including around our interaction with customers. But AI also creates existential risk because, I believe, it will give opportunity to non-incumbents. It will potentially allow competitors to come in at a much lower cost,” said George Kuria, CEO at Sanlam Allianz General Insurance Kenya.
The virtual discussion also focussed on the balance between automation and human judgment, especially in complex claims and high-value policies where ethical or contextual considerations remain difficult for machines to resolve independently.
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