Cynthia Ezekwe
In an industry increasingly needing innovation as key to survival, the insurance sector is turning to artificial intelligence (AI) for a competitive edge, hoping to gain greater efficiency, effectiveness, and relevance through technological advancements. As data continues to increase rapidly and the need to analyse it becomes imperative, AI is proving to be a potent tool for insurance companies seeking to automate processes, elevate customer experiences, and make data-driven decisions.
However, as the integration of AI becomes increasingly vital, insurance experts have cautioned that the successful implementation of this transformative technology hinges on enhanced technical expertise.
Fola Daniel, chief executive officer of FBS Reinsurance Limited, a reinsurance firm in Nigeria, voiced his worries about the insufficient technical know-how that is currently available to successfully integrate and manage AI systems within the insurance industry.
Citing the lack of personnel with the requisite skills and expertise to implement and maintain AI solutions as a pressing concern, Daniel highlighted the potential pitfalls that could arise if companies fail to properly invest in their workforce’s technical competencies.
He warned that without adequate technical expertise, the adoption of AI in the insurance sector could prove to be more of a hindrance than a help.
Daniel, in a media chat, emphasised the urgent need for insurers to prioritise developing the technical skills of their workforce to guarantee a smooth and successful AI integration process.
Highlighting the risks of not investing in technical expertise, he cautioned that insurers who fail to do so could find themselves falling behind their competitors, losing market share, and compromising customer trust.
Daniel acknowledged that while artificial intelligence has undeniably revolutionised the insurance industry, there are still certain areas where human experience and expertise are indispensable. Highlighting the complementary role of human experience and artificial intelligence, the insurance practitioner emphasised the fact that despite the transformative capabilities of AI, there are aspects of the insurance industry that require the specialised knowledge and experience that only human expertise can provide.
“For instance, in marketing, people need to see your face; you need to talk about the company profile. You can do that in print, but it creates a better impression when they meet you, speak with you and ask questions whose answers cannot be obtained from the publications on your website. Hence there is a need to bridge the technical knowledge gaps,’’ he explained.
Daniel noted that AI adoption and implementation requires careful planning, execution, and ongoing evaluation which can be facilitated and made easier with the right technical expertise, enabling insurance companies to harness the full potential of AI, minimise risks and maximise returns on investment.
The CEO of FBS Reinsurance Limited, expressed optimism that by harnessing the power of AI alongside a highly skilled workforce, insurers can reap a multitude of benefits, adding that with AI systems in place, insurers can optimise efficiency, enhance customer experiences, and maintain a competitive edge. This, in turn, will drive business growth, boost profitability, and establish them as industry leaders in the rapidly transforming insurance landscape.
Funmi Omo, chief executive officer, Enterprise Life Nigeria, has also added her voice to the call for the use of Artificial Intelligence and other digital technologies to spur insurance penetration in Nigeria.
According to Omo, harnessing these technologies is crucial to increasing insurance adoption in the country, and Enterprise Life is committed to leading the way in advocating for wider digital adoption across the insurance industry.
In a recent virtual Q&A session titled “Digital Transformation in Africa Insurance”, Omo drew attention to the growing influence of digital technologies in reshaping the African insurance landscape.
During the session, Omo highlighted how the combination of digital platforms, artificial intelligence, machine learning, the Internet of Things, data analytics, and blockchain technology is upending traditional insurance models, ushering in a new era of efficiency, innovation, and customer-centricity.
With a keen focus on catering to the unique needs of the African market, Omo underscored the significance of developing user-friendly insurance applications optimised for low-bandwidth connections and offline capabilities. These applications, she argued, should facilitate a seamless insurance experience, offering flexible payment options and round-the-clock customer support.
The former managing director of African Alliance Insurance further dwelled on the need for insurance companies to adapt to the demands of the African market by leveraging AI and machine learning to expand coverage to underserved segments.
According to her, by analysing alternative data sources and automating claims processing, these technologies have the potential to democratise insurance, making it more accessible to a broader range of people.
In order to successfully implement these strategies, Omo suggested that insurance companies prioritise upskilling their employees and fostering a culture of innovation. This, she explained, could be achieved through the establishment of dedicated innovation labs and cross-functional teams that work collaboratively to drive innovation and embrace new technologies.
Highlighting the importance of finding a balance between innovation and trust, Omo stated that insurance companies that can establish a culture of innovation while maintaining customer confidence and complying with regulations will be the ones to succeed in the digital age.
