INSURERS have been advised to set up a database to share information on fraudsters to help cut losses due to fraud.
Speaking at the annual industry conference hosted by Insurance Institute of Kenya yesterday, Finance Minister Njeru Githae urged insurance firms to emulate banks which share information on serial loan defaulters through the credit reference bureaus.
"You should adopt modern technology to increase efficiency and minimise fraud in the sector," Githae told delegates at the conference. "Perhaps its time you start a credit reference bureau for insurance companies."
Speaking on the sidelines of the conference, Insurance Regulatory Authority CEO Sammy Makove said the regulator would consider the matter.
"There is a system in place by AKI (Association of Kenya Insurers) called the intergrated motor system data for sharing information on the motor insurance business," said Makove.
At the moment though, he said, IRA is considering contacting the licensed CRBs to deliberate on whether it would be possible for insurance firms to also use their software to run an information sharing service tailored to the industry.
The conference was also attended by other East African insurers and regulatory authorities. Githae used the event to champion for streamlined services to eliminate double vetting of firms.
"If Makove here licenses a company, surely why should that company go to Uganda again and be required to be licensed again by the Insurance Regulator of Uganda?" wondered the finance minister.
He urged the sector to be at the forefront to speed up regional integration of the financial services sector to make the common market treaty signed in 2010, a reality on the ground.