Insurers brace for uncertainty amid Gen-Z shocks
By Mathew Ndungu, July 4, 2025Insurance companies are enhancing their risk management efforts following a surge in claims linked to recent Gen-Z-led protests that resulted in extensive looting, vehicle arson, and property damage across Kenya.
Speaking during a customer-outreach forum in Thika, Meshack Miyogo, managing director of Cooperative Insurance Company (CIC), acknowledged the sector’s exposure to significant losses triggered not only by the protests but also by recent nationwide floods.
He noted that CIC was processing compensation running into millions of shillings to support affected businesses and help them get back on their feet. He further assured that all eligible claims would be honored, emphasizing that there was no need for alarm among policyholders impacted by the unrest.
“We want to assure our customers that we stand with them in these difficult times,” he said.
As the insurance sector grapples with increased claim volumes, firms are focusing on strengthening risk frameworks to protect their financial positions and retain customer trust. The industry is responding to the dual challenge of political unrest and climate-related disasters by doubling down on resilience, education, and customer engagement.
Prepare for big shocks
Insurers are now investing heavily in advanced risk assessment tools, such as data analytics, geospatial mapping, and artificial intelligence, to better predict and prepare for large-scale events. These technologies enable firms to anticipate high-risk zones and tailor products that reflect localized risk profiles, especially in urban centres that have become flashpoints for political demonstrations or flood-prone areas vulnerable to climate shocks.
Insurers are expanding their public awareness campaigns to educate policyholders. This push for greater transparency aims to reduce claim disputes, shorten settlement times, and improve client satisfaction in the long term.
Customer engagement has also become a central pillar of industry recovery efforts.
Companies are not only increasing face-to-face interactions through field agents and customer forums but are also leveraging digital platforms to enhance accessibility and responsiveness.
Miyogo also urged business owners to reassess their current insurance coverage and consider taking up comprehensive products designed to shield them from unexpected events.
With the political environment becoming increasingly volatile, he stressed the importance of better preparedness and proactive risk planning.
Regulatory bodies such as the Insurance Regulatory Authority (IRA) are also encouraging firms to adopt more robust solvency frameworks and ensure sufficient capital buffers to withstand future shocks. The IRA has emphasized the importance of scenario planning and stress testing to measure potential losses and adjust reinsurance strategies accordingly.