Insurers are reacting to fraud

Real Insurance has just inaugurated the first of its inspection and car repair centers. Costing 10 million KES (129 600 USD), this center may harbor 50 vehicles together. Other centers are due to be opened in two years' time. Expertise centers are widespread in South Africa and in Botswana where they allowed insurance companies to reduce the cost of claims by 20%. Real Insurance' strategy is to improve its operational efficiency and to stop the rising costs of motor accidents. The insurance of private vehicles has made a loss of 1.2 billion KES (16.7 million USD) in 2008, mainly because of fictitious claims.