The reinsurance firm (Kenya Re) is looking to partner with local insurers to create a pool of specialised professionals in new and emerging risk areas like cyber security and climate change.
This is in a bid to counter the rising cases of fraud in cyber security and climate change segments, the new products gaining momentum in the insurance space.
The initiative will be rolled out through the recently established Kenya Re Academy.
Commenting on the initiative, Kenya Re Group managing director Hillary Wachinga, said the move mainly seeks to enhance industry knowledge and build skill sets in line with the evolving nature of the insurance business.
"By implementing stringent fraud detection measures and transparency, both parties can safeguard their interests and ensure the success of their business," Wachinga said.
He spoke during the firm's inaugural award ceremony which was attended by various insurance companies and brokers.
The initiative comes at a time the country is reported for instance, to be experiencing a surge in the number of cyber threats in the wake of AI.
Consulting firm PwC recently noted that criminals have become increasingly sophisticated and exploiting vulnerabilities in new and innovative ways backed by AI.
The latest data by the Communications Authority of Kenya (CA) shows Kenya witnessed increased cyber threats in the three months to December 2023, with more than 1.2 billion cases recorded.
This is from 123 million threats detected in the previous quarter, representing a 943 percent jump.
The regulator attributes the increase to the enhancement of the country's cyber threat monitoring capabilities, and the increased exploitation of 'system vulnerabilities' fueled by increased deployment and use of internet devices.
In response to the threats, the National Cyber Security Centre issued 8.06 million advisories in the period under review.
It represented a 44.4 percent increase compared to the 5.6 million that were issued in the previous quarter.
Notably, system misconfiguration attacks were the most prevalent, which CA says aligns with global trends in cyber threat activity where malware attacks, and more specifically ransomware, were most rampant.
Further highlighting the reasons behind the collaboration initiative, Wachinga noted that the corporation launched the incentive programme also to encourage prompt premium payments by insurers.
This was meant to help the national re-insurer meet its reinsurance obligations and safeguard its profitability.
“By contributing to our profitability, you give us the drive and the financial resources to invest in research, development and innovation," he said.
"You also contribute to the growth of the local insurance and in turn improve the national economy since we retain more premiums locally.”
He reiterates that when premiums stay within the country, it strengthens the financial health of local insurers and re-insurers, allowing them to better the needs of policyholders.
It also plays a key role in bolstering the economic well-being of the nation by promoting financial security, job creation and sustainable economic growth, he says in part.
