Rising fraudulent claims erode East Africa’s insurers returns

A car accident. Fraudulent claims are on the rise in motor and medical segments of the insurance business. AFP PHOTO

Shareholders of East Africa’s insurance firms are staring at reduced earnings this year due to the rising cases of fraud and premium undercutting by competitors.

A new survey by analysts shows increased cases of fraud within the general insurance business, posing a significant threat to the profitability of insurance firms.