There has been a worrying trend of infiltration of criminals into the Insurance Agency business.
In March 2023, IRA published statistics in the case of Insurance Fraud reported in Quarter 4 of 2022
Bima Yangu App
The Association of Kenya Insurers has launched the Bima Yangu App. This is a mobile application that enables consumers to verify the status of their motor insurance, report a motor insurance claim and verify their life insurance tax relief certificate.
Story... Story : Dishonest Agent vs Trusting Client
As usual, there's always a story! Fictional, of course! Names and Location have been changed so as not to represent any individual(s)!
Matilda ran an insurance agency somewhere along the busy Mombasa - Nairobi - Malaba corridor. Business grew. However, all was well until she teamed up with the wrong crowd around the covid period. Thus was borne a "burning desire" to emigrate to the United States, at all costs. The idea inflamed her mindset. Every waking moment was purposeful to meet her nefarious plan. She was possessed. The plan involved issuing fake insurance certificates. Clients trusted her with cash payments over the years. Claim rates were low, surprisingly.
Then the first claim materialised. An empty office, vacant house, cancelled mobile phone line and silent relatives spoke volumes to the client and investigators. Matilda had by then oiled her way through the visa processing and boarded a flight to the United States, a fugitive from justice, dreading deportation every day.
However, this is Africa. You can run but not from "Kiboko ya Mungu"!
Story... Story: Honest Agent vs Bad Client
Kinyua was a new agent in Nairobi's CBD. His efforts were rewarded as he got new motor vehicle insurance clients. On this occasion, he received about KShs 32,000 cash from the owner of a matatu being a deposit for the premium. Kinyua promptly deposited the cash at the Insurance Companies branch along Moi Avenue. Unfortunately, a claim occurred.
Kinyua was harassed to follow up the balance of the insurance premium. Shock on him! The client turned on him, claiming that he gave him the full insurance premium in cash. He threatened to call in the CID (precursor of DCI) and drew his gun. The young man was scared and shaking. He "managed" to get to the Moi Avenue branch and sat with other agents.
Ouma, an elderly agent, had been in the business from the 1980s. He noticed Kinyua, whom he'd known and mentored. He noticed that the young man was not himself. As he explained his predicament, he broke down. Ouma called other agents and, explained the problem.
The insurance agents organised a Harambee/Fund Raising and helped pay the balance.
Today, Kinyua is a senior executive. Ouma is happily retired. The matatu guy is nowhere.
Best Practice for Agents
Here are a few Best Practices for your Agency
- Have a strict "No-Cash" Policy.
- Vet your employees or contract workers.
- Protect your stationery.
- Verify that you have an email from the DMVIC in addition to an email from the Insurance Company.
Protect Yourself!
Sources:
1. IRA Insurance Industry Report (March 2023) on Q4 of 2023, Table 5: Nature of the Insurance Fraud Cases reported, https://www.ira.go.ke/images/Q4/Quarter%204%202022%20Industry%20Release%2006-03-2023-1.pdf
2. AKI launches consumer "Bima Yangu" - self-service insurance app, Hazel Kingori (August, 2023): https://akinsure.com/media/aki-launches-consumer-bima-yangu-self-service-insurance-app
