Innovation, technology adoption, and a shift towards more customer-centric and inclusive solutions are expected to shape the future of the insurance sector in Kenya.

With the continued growth of digital insurance solutions, the rise of InsurTech – the use of technology innovations designed to make the current insurance model more efficient – and a focus on financial inclusion, the sector is poised to expand its reach and relevance across the country.

Collaboration between insurance companies and technology startups is expected to help insurers leverage innovative solutions that enhance customer experience and operational efficiency. It will also facilitate easier payment options for policyholders or provide platforms for micro-insurance products targeting low-income individuals.

Technological advancements have enabled access and choice of insurance options online, on websites and apps, without going through a broker.

According to the Insurance Regulatory Authority (IRA), InsurTech, customer-centric products and services, data-driven decision-making, such as deploying big data and analytics, telematics, Artificial Intelligence (AI), and machine learning, are some of the trends shaping the industry.

Stella Njunge, CEO of NCBA Insurance, in a recent interview with “The Insurer” magazine, a publication of the Association of Kenya Insurers (AKI), grouped the most significant trends shaping the insurance sector in 2025 into five areas – technology and artificial intelligence (AI), the rise of fintech and micro insurance companies, conversations on sustainability and climate change, data protection regulations, and change in demographics.

On technology and AI, Stella noted that technology and automation developments positively impact service delivery and customer experience by shortening service turnaround time and enhancing the overall customer experience.

“Underwriters and business partners are making huge investments in this area. There is already use of AI, robotics and data analytical tools in claims adjudication and operation cycles,” Stella said.

NCBA already has a premier digital insurance portal called NCBA Go Insure that empowers customers to take control of their insurance needs. The self-service portal aims to simplify the insurance process for policyholders.

The platform provides users with advanced data security protocols and unparalleled convenience in obtaining and comparing motor insurance quotes from multiple underwriters whilst making informed decisions.

According to Stella, digitisation of customer journeys to the extent of offering customers and business partners the opportunity to self-serve on company websites and portals are new initiatives targeted to attract digitally savvy clientele and support business partners.

Stella pointed out that the rise of fintech and micro-insurance companies addressing the bottom of the pyramid is an area where underwriters have invested in product and system development. Various firms are running initiatives to access funding to support these developments, which ultimately impact society.

Additionally, conversations on sustainability and climate change are raising awareness of the need for companies to become good corporate citizens as they are significantly shaping the insurance industry.

Similarly, the CEO said that the change in demographics, with the average age of the customer reducing, presents various risks and opportunities, and the industry is conducting research into new products and channels targeting this segment.