Despite ongoing investments in technology and steady premium growth, insurance penetration in Kenya remains low, stuck between 2.3 and 2.4 percent of GDP. These figures have barely moved in recent years, pointing to deeper structural issues that continue to hinder the sector’s development.
One of the most visible symptoms of these underlying problems is growing customer dissatisfaction. Delayed or rejected claims are becoming increasingly common, often due to technicalities such as late premium payments or incomplete documentation. Even when claims are paid, policyholders frequently describe the process as slow, opaque, and difficult to navigate. As a result, many still view insurance as an expensive product that fails to deliver on its promises. If these patterns persist, the industry risks losing further ground, not only with consumers but also with regulators.
Addressing this challenge requires, for starters, a fundamental shift in how claims are handled. The first step is to move away from manual, paper-based processes. In today’s environment, a modern insurance system must be digital by default. Claims should be submitted electronically, tracked in real time, and settled quickly whenever possible. Technologies such as artificial intelligence and automation can play a critical role, streamlining fraud detection and verifying documentation, while allowing genuine claims to move through the system more efficiently. This kind of transformation reduces operational costs and enhances the customer experience, all without compromising due diligence.
But improving the process is also about clarity as it is about speed. Language remains a major barrier with most policyholders not speaking the language of “indemnity clauses” and “force majeure” exclusions. To build trust, insurers must adopt plain, accessible communication that clearly explains terms, conditions, and procedures. Where technical language is unavoidable, explanatory tools and responsive customer support should be readily available to guide users. It is only when customers understand what they are buying, and what to expect when something goes wrong, that insurance can fulfill its promise of protection.
Personalization is another crucial piece of the puzzle as different customers have different needs, requiring the industry to adapt accordingly. Insurers should offer multiple channels for claims reporting and assistance, accommodating policyholder who prefer to interact through WhatsApp, mobile apps, or call centers. Data analytics can help tailor support to each situation. For example, sending proactive messages following a rainstorm to check on the customer and offer help can act as empathetic outreach that builds long-term loyalty and strengthens the insurer–customer relationship.
Equally important is the need to reframe how the claims process itself is perceived. Too often, customers experience it as an adversarial negotiation rather than a collaborative engagement. This dynamic breeds mistrust and adds unnecessary friction. A better approach treats the process as a partnership. Claims handlers should be trained in both technical procedures as well as empathy and conflict resolution. Embedding the Treating Customers Fairly framework, long championed by the regulator, into everyday operations is essential, and must move from a theoretical ideal to a lived reality.
Of course, fraud detection remains critical, but it should not come at the expense of genuine claims. With the right technology, insurers can differentiate between high-risk and low-risk claims, allowing them to focus investigative resources where they are most needed. A system that assumes dishonesty by default only alienates honest customers and delays legitimate settlements. Instead, balanced risk management can protect both insurer and insured, while fostering trust rather than suspicion.
Finally, inclusion must also be at the forefront of any strategy to revitalise the sector. Most informal workers and low-income households in Kenya remain uninsured, often perceiving insurance as a product designed for the wealthy or formal sector employees. Changing this perception requires targeted innovation. Insurers should invest in community-based distribution channels and micro-insurance products tailored to underserved populations. Crucially, the associated claims processes must be just as accessible, because a product is only valuable if customers can use it when it matters most.
Ultimately, the future of insurance claims in Kenya will not be secured by introducing new jargon or complex tools. Instead, it depends on a renewed focus on simplicity, fairness, and accessibility. If insurers can stop treating claims as battles to be won and begin viewing them as opportunities to deliver value, they can rebuild public trust and unlock meaningful growth.
By Patrick Omoro – Head of Claims at Minet Kenya.