Latest News on Insurance in Kenya (from May 22, 2025)

The Kenyan insurance sector is experiencing significant developments in May 2025, marked by high-profile fraud cases, strategic mergers, and innovative insurance products. From the Ksh309 million Invesco Assurance fraud scheme to NCBA Group’s expansion into insurance through the acquisition of AIG Kenya, the industry is witnessing both challenges and growth opportunities. Additionally, climate risk insurance initiatives and healthcare financing partnerships are reshaping the landscape, while digital transformation continues to drive accessibility and innovation across the sector.

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⚖️Major Fraud Case Rocks Insurance Sector

Seven senior officials and former executives from Invesco Assurance Company Limited and Compliant Insurance Agency have been charged with orchestrating a Ksh309 million fraud scheme involving client premiums. The Directorate of Criminal Investigations (DCI) revealed that, between May and August 2024, insurance premiums collected from 27 Invesco branches were funneled into a secret bank account registered to Compliant Insurance Agency. The funds were then siphoned off through personal Mpesa accounts of the accused.

The Policyholders Compensation Fund (PCF) discovered the fraudulent scheme during statutory management of Invesco Assurance, leading to the arrests and arraignment of the implicated executives on charges including insurance fraud and stealing by directors. This case highlights the importance of regulatory oversight and the need for robust internal controls within insurance companies.

🏢NCBA Group Expands Insurance Operations

NCBA Group PLC reported a net profit of Ksh5.5 billion for Q1 2025, driven by digital lending and strategic expansion. Notably, NCBA completed the integration of AIG Kenya Insurance, rebranding it to NCBA Insurance. This move aligns with NCBA’s ambition to capture a larger share of Kenya’s Ksh309 billion insurance market.

The group is enhancing digital insurance services, including AI-powered features on its CarDuka vehicle marketplace and expanded online platforms for SMEs and corporates. This strategic expansion represents a significant shift in the banking sector’s approach to insurance, leveraging existing customer relationships to cross-sell insurance products.

🏥Healthcare Insurance and Public-Private Partnerships

The Ministry of Health (MoH) has outlined progressive approaches to healthcare financing, emphasizing strategic public-private partnerships and scaling up programs like Linda Mama. These initiatives aim to improve access to health insurance and financial protection for vulnerable populations, signaling a shift towards more inclusive healthcare coverage in Kenya.

The focus on public-private partnerships represents a recognition that sustainable healthcare financing requires collaboration between government agencies and private sector players, including insurance companies. This approach is expected to enhance healthcare accessibility while reducing the financial burden on the government.

🌍Climate and Humanitarian Insurance Initiatives

Allianz, in collaboration with the UNHCR, is expanding climate risk insurance programs in Kenya and other regions. These initiatives are designed to provide timely payouts to vulnerable communities, such as smallholder farmers, when climate shocks like droughts occur.

The programs are being adjusted based on feedback from Kenyan farmers to ensure insurance payouts cover both loan repayments and the purchase of seeds for the next planting season, enhancing resilience and recovery. This represents a growing trend towards parametric insurance products that can provide rapid payouts based on predetermined triggers rather than traditional claim assessment processes.

📈Industry Trends and Top Insurers

Key Trends Shaping the Kenyan Insurance Sector in 2025

The insurance landscape in Kenya is being transformed by several key trends that are reshaping how insurers operate and serve their customers. Increased adoption of digital and mobile platforms for policy management is making insurance more accessible to tech-savvy consumers, while the growth in embedded and micro-insurance products is expanding coverage to previously underserved populations.

The introduction of green and climate risk insurance products, such as coverage for electric vehicles and climate-related crop risks, reflects the industry’s response to environmental challenges. There’s also an increased emphasis on trust, transparency, and personalized insurance offerings as companies compete for customer loyalty in an increasingly crowded market.

Leading Market Players

Leading insurers in the market include APA, Old Mutual, CIC, GA Insurance, Britam, and Jubilee Health, with strong performances in claims responsiveness, digital innovation, and customer service. These companies are setting the standard for service delivery and technological advancement in the sector.

💰Dividend News

CIC Insurance Group declared a final dividend of Ksh0.13 per share, reflecting stable performance and continued returns to shareholders. This dividend declaration demonstrates the company’s commitment to delivering value to investors while maintaining adequate reserves for business operations and growth.

📊Summary Table: Key Developments

Date	Headline/Development	Impact/Details
May 21-22	Invesco Assurance fraud case	Ksh309M siphoned via secret account; top executives charged
Q1 2025	NCBA Group expands insurance (AIG Kenya integration)	NCBA Insurance launched, targeting larger market share and digital innovation
May 22	MoH promotes public-private healthcare insurance partnerships	Focus on scaling Linda Mama and inclusive health financing
May 22	Allianz expands climate/humanitarian insurance in Kenya	Programs for farmers, displaced people; feedback-driven policy adjustments
May 2025	CIC Insurance Group dividend	Final dividend of Ksh0.13 per share declared
May 2025	Industry trends	Digitalization, micro-insurance, green products, personalized offerings

These developments highlight a dynamic insurance sector in Kenya, marked by regulatory scrutiny, digital transformation, new product offerings, and a growing focus on climate resilience and inclusive coverage. The industry continues to evolve rapidly, driven by technological advancement, changing consumer needs, and regulatory requirements that prioritize consumer protection and market stability.