Abstract:
Kenya has one of the fastest growing middle class populations in sub-Saharan Africa. Motor
insurance fraud is a serious risk in Kenya. This study sought to examine the influence of macro-
economic factors, institutional factors and individual factors on motor insurance fraud risks in
among Insurance Companies in Kenya. The study was guided by Anomie theory, conflict theory
and fraud management life cycle theory. The target population was all the 28 general business
Insurance Companies based in Nairobi, from which 84 respondents were individuals at the
claims management, risk management and motor assessment departments. Primary data was
collected through a structured questionnaire. Based on the statistics, 80.1% of any change in
fraud risks among motor insurance companies was explained macro-economic, individual, and
institutional factors. Macro economic factors and individual factors were found to significantly.
influence the motor insurance fraud risk while institutional factors did not have a statistically
significant influence on fraud risks among insurance companies. During times of hard economic
times, insurance companies should be more vigilant on claims and it is important for insurance
companies to keep track of individuals with history of regular claims as the same was found to
have a relationship with insurance fraud risks.