Insights from the 19th IARS Annual Conference | May 2025

At the 19th Institute of Loss Adjusters & Risk Surveyors (IARS) Annual Conference in Naivasha, Mr. Simon Gatimu, Head of Reinsurance at Acentria Group, delivered an insightful presentation titled “Insurance Solutions to Cyber Security Risks of AI.”

His session explored how artificial intelligence (AI), technology, and cyber risk intersect — highlighting emerging threats, industry vulnerabilities, and the strategic opportunities available to insurers, reinsurers, and risk professionals in Kenya’s rapidly digitizing economy.

AI and Technology: Understanding the Distinction

Mr. Gatimu began by distinguishing between technology and artificial intelligence — a subtle but essential differentiation often overlooked in industry discussions.

He likened technology to a toolbox, containing a range of instruments, while AI represents a specific tool within that set — “a spanner” designed to perform particular analytical and decision-making functions.

This distinction underscores that while technology enables automation, AI extends it through machine learning, predictive modeling, and cognitive decision-making, amplifying both opportunities and risks within the insurance ecosystem.

The Cyber Security Landscape

Cyber risk remains one of the most significant exposures confronting modern businesses. Mr. Gatimu framed cyber security within a “cyber triangle” of three components:

1. Vulnerability – system weaknesses or process gaps

2. Threat actors – hackers, cybercriminals, and malicious insiders

3. Asset value – the worth of the data or system being targeted

Together, these elements define the scope of cyber exposure and help quantify the potential financial and reputational impacts of an attack.

Emerging trends such as Cybercrime-as-a-Service (CaaS) and AI-driven attacks are expanding the threat landscape. As AI systems become more integrated into daily operations, they introduce new, complex vulnerabilities that traditional security models struggle to address.

AI Trends and Sectoral Integration in Kenya

Kenya’s vibrant technology scene has seen AI rapidly adopted across key sectors:

• FinTech – for fraud detection and credit scoring

• HealthTech – in diagnostic support and patient data analytics

• AgriTech – for precision farming and predictive yield modeling

• Telecommunications – in customer experience and network optimization

While these advances drive growth and innovation, they also create new cyber exposure points — necessitating more advanced, flexible, and data-informed insurance solutions.

Cyber Security Trends and Challenges

Mr. Gatimu highlighted a surge in cyber threats globally and regionally, noting increased regulatory enforcement and adoption of advanced security models among leading organizations.
However, key challenges persist:

• Limited awareness among SMEs

• Scarcity of reliable data for underwriting cyber risk

• High cost of comprehensive protection systems

• Complexity of quantifying intangible digital exposures

These gaps present both a risk and an opportunity for insurers seeking to build relevance in the cyber line of business.

Strategic Recommendations for the Industry

To strengthen resilience and readiness, Mr. Gatimu proposed a multi-pronged strategy:

1. Enhance cyber security infrastructure within organizations and across supply chains.

2. Develop AI competencies among professionals, particularly within claims, underwriting, and risk functions.

3. Review and refine cyber insurance policies to address emerging AI-related threats.

4. Stay informed on evolving regulations, including Kenya’s Data Protection Act (2019) and international cyber compliance frameworks.

These actions, he noted, are critical to ensuring that insurance remains relevant and responsive in an era of digital interconnectivity.

Cyber Risk Assessment and Regulatory Context

A robust cyber risk assessment framework is foundational to both underwriting and claims handling.
Mr. Gatimu outlined the key assessment components:

• Asset inventory – identifying what needs protection

• Threat landscape analysis – understanding who and what could attack

• Vulnerability scanning – testing systems for weaknesses

• Risk quantification – estimating financial exposure

He also underscored the importance of regulatory alignment with Kenya’s Data Protection Act, particularly around data handling, breach notification, and claims documentation.

Underwriters and adjusters, he observed, must interpret these legal considerations in both policy wording and loss evaluation.

Insurance Solutions for a Digital Future

To effectively respond to the growing cyber threat, insurers must develop comprehensive cyber insurance products — supported by detailed proposal forms, risk questionnaires, and dynamic policy wordings that evolve with technological change.

Such policies should not only provide indemnity but also promote risk awareness, prevention, and recovery support — reinforcing insurance as both a financial and strategic partner in cyber resilience.

Closing Reflections: Balancing Innovation and Protection

In conclusion, Mr. Gatimu highlighted that the intersection of AI, technology, and cyber security presents both significant challenges and powerful opportunities.

Continuous learning, strategic adaptation, and proactive collaboration between insurers, reinsurers, regulators, and technologists will determine how effectively the market responds to this evolving risk landscape.

At Specialty Claims Academy (SCA), we echo this call to action. SCA continues to support insurers, brokers, and loss adjusters through specialized training on cyber risk management, data protection, and AI-related exposures, helping professionals build the skills needed to interpret, underwrite, and manage these complex risks.

Organizations seeking to strengthen their technical understanding of cyber risk and digital insurance solutions are encouraged to partner with SCA for tailored training and capacity-building programmes.

📧 training@specialtyclaims.co.ke
🌐 www.specialtyclaims.co.ke

Author:
Fredrick A. Oloo
BCom (Ins.), Dip CII, Dip CILA
Lead Trainer & Director – Specialty Claims Academy (SCA)

( Also: Managing Director – Niche Loss Adjusters & Marine Surveyors Ltd
Council Member – Institute of Loss Adjusters & Risk Surveyors (IARS – Kenya)
Committee Member – Chartered Institute of Loss Adjusters (CILA – UK)’s Future Focus Special Interest Group