With fraud in the insurance industry increasingly taking on a new face, players are seeking ways through which it can be curbed to ensure that the industry remains sound and vibrant.
Among the avenues being proposed is the creation of a shared industry data base to track and prevent fraudulent claims.
Speaking at the 67th CEO’s Breakfast meeting at Serena Kampala Hotel on February 19, the Uganda Association of Engineering Valuers and Loss Assessors (UAEVLA) chairperson, Mr. Geoffrey Sewakiryanga said there is an increase in sophisticated fraud, with criminals using Artificial Intelligence (AI) to defraud the industry.
“Fraud has moved from individual exaggeration to organized networks; from paper alteration to digital forgery; from localized schemes to cross-border operations and from simple inflation to AI-enhanced evidence. With AI, criminals can create realistic deep fakes, forge documents, identities and signatures,” he said.
He noted that this calls for industry players to shift from reactive detection to proactive, AI-driven prevention.
“If fraudsters use technology; so, must we. Let us embrace AI-driven fraud detection, use real-time claim analytics, drone inspections, shared fraud data bases and blockchain secured documentation,” he said.
Mr. Sewakiryanga was presenting on the theme: “the future of insurance claims management in the changing face of fraud.” The meeting which sought to interrogate the future of insurance claims management, in light of increasingly organized and technologically sophisticated fraud schemes, was organized by the Insurance Regulatory Authority of Uganda.
He explained that fraud leads to higher loss ratios, increases premiums, delays genuine claims settlements, results in litigation costs and erodes customer trust and damage industry credibility, especially due disputed claims, or prolonged investigations.
To strengthen fraud detection, Mr. Sewakiryanga urged the industry to engage Assessors at first notice of loss, invest in digital verification tools, standardize documentation, encourage whistleblowing and work closely with the IRA.
Collective action
The IRA Chief Executive Officer, Alhaj Dr. Ibrahim Kaddunabi Lubega also underscored the growing systemic threat of fraud, noting that it requires collective action among all industry players.
“Claims management remains the ultimate test of insurance credibility; fraudulent claims are not only eroding trust in the industry but they are increasing the operational costs, reducing efficiency, and ultimately disadvantage the policyholders/customers we are serving,” he said.
He alluded to the need to fast track the establishment of the industry’s fraud data-sharing strategy which is cited in Uganda Insurers Association (UIA) strategic plan.
He also urged players to ensure proper underwriting at policy inception to avoid it being done at the point of claims settlement, which in most cases results in disputes.
The UIA Chairperson, Ms. Ruth Namuli noted that the Association, in collaboration with IRA, is in the process of implementing the establishment of a shared fraud database.
She also stressed the importance of professional competence, ethical conduct, effective internal dispute resolution and strong governance frameworks in fighting the vice.
Industry players were also urged to actively participate in the forthcoming Annual Insurance Week (AIW) scheduled to run from March 19- 26, 2026 at the Constitutional Square and the Insurance Innovation Awards (IIA), scheduled for March 27, 2026.