The insurance industry in Kenya is undergoing a major transformation, with experts saying that digital technology could be the key to unlocking wider coverage and improving customer experiences across the country.
According to Stephen Lokonyo, Managing Director at First Assurance, the integration of digital tools is revolutionizing the sector, making insurance more accessible, efficient, and appealing to the modern consumer.
“For a long time, insurance in Kenya was associated with long queues, paperwork, and slow responses,” Lokonyo said. “But with mobile apps, digital payments, and AI tools, the industry is becoming faster, smarter, and more inclusive.”
Pandemic Accelerated the Shift
The onset of the COVID-19 pandemic forced many insurance firms to rethink their approach, speeding up the adoption of virtual customer service, online policy issuance, and digital claims processing.
Today, customers can purchase and manage insurance products entirely online—comparing quotes, customizing coverage, uploading documents, and receiving instant confirmation without ever visiting an office.
Embedded Insurance on the Rise
Insurers such as First Assurance are embracing “embedded insurance,” integrating services directly into digital platforms such as e-commerce sites, ride-hailing apps, and mobile money services.
“This allows more people to access insurance seamlessly—when they’re booking a ride, buying a car, or making an online purchase,” Lokonyo explained.
Digital Tools Expanding Reach
The use of artificial intelligence, data analytics, and mobile technology is also enabling insurers to reach underserved communities, streamline operations, and reduce fraud.
Insurtech innovations such as telematics (which monitor driving behavior for motor insurance), predictive analytics for health risks, and AI-powered claims assessment are becoming mainstream in Kenya’s leading insurance companies including Britam, Jubilee, and CIC Group.
Building Trust and Penetration
Kenya’s insurance penetration rate remains low—below 3%—compared to global averages. Industry stakeholders believe that simplifying access, improving transparency, and cutting red tape through digital platforms can help increase uptake.
“Technology is not just modernizing our operations—it’s helping rebuild public trust and proving that insurance can be simple, affordable, and essential,” Lokonyo said.
The Road Ahead
With continued investment in digital infrastructure and consumer education, Kenya’s insurance industry is poised for sustained growth. Analysts predict that innovation-driven expansion could help the sector play a larger role in economic stability, health protection, and disaster recovery.
As Lokonyo puts it, “The future of insurance in Kenya lies in our ability to innovate—and ensure that no one is left behind.”
