AAR Insurance has announced its entry into Kenya’s private motor insurance space, as it targets cross-bundling of services with its flagship medical cover offerings.
The underwriter, long known for its dominance in health insurance, says it will initially focus on private motor insurance, aiming to grow the product line by leveraging its existing base of medical insurance clients.According to AAR Group CEO Nixon Shigoli and Principal Officer of General Insurance Patrick Kosgei, the firm is positioning itself to offer discounts to clients who take both medical and motor policies—an effort to deliver added value and convenience through bundled coverage.AAR’s move comes at a time when motor insurance remains the most active class in Kenya’s general insurance sector, accounting for nearly a third of gross premiums.
“We’re committed to doing it right,” said Mr. Kosgei, adding that the firm is not rushing to gain market share but intends to deliver quality service, fast claims processing, and consistent customer support as core differentiators in the general insurance space.
AAR’s move comes at a time when motor insurance remains the most active class in Kenya’s general insurance sector, accounting for nearly a third of gross premiums. However, the segment has been plagued by rising claims, fraud concerns, and cost inefficiencies. AAR says its entry is informed by customer demand and its confidence in using a digital-first model to deliver improved user experience and better claims outcomes.
The company has already digitized much of its medical insurance operations—enabling clients to pay via M-PESA, access telemedicine, and file claims online—and plans to extend these efficiencies to motor cover. Through a single mobile platform, customers will be able to access both covers, track claims, and renew policies seamlessly.
By strategically linking medical and motor policies, AAR hopes to drive loyalty, improve retention, and set a new standard for integrated insurance services. The expansion is also expected to deepen the firm’s overall risk pool while positioning it for further growth in the non-health segments of the market.
As the insurer scales its operations in this new vertical, industry stakeholders will be watching how well AAR’s customer-centric approach reshapes expectations in a market that continues to evolve rapidly.