Nigerian insurers challenged to leverage AI for increased efficiency

Business a.m.

Amidst the growing recognition of Artificial Intelligence (AI) as a game-changer for the insurance industry, the Chartered Insurance Institute of Nigeria (CIIN) has urged stakeholders in the sector to seize the opportunities presented by AI to enhance customer service and optimise business operations.

Yetunde Ilori, the CIIN president, issued the call to action at the 2024 Office Representatives Committee Workshop, themed “AI and the Future of the Insurance Industry”, which was organised by the institute in Lagos.

Addressing the workshop attendees, Ilori highlighted the crucial role of AI adoption in the insurance sector, emphasising that AI was not a threat to their jobs, but rather a tool with immense potential to boost efficiency across the industry.

“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members,” she said.

With the overarching goal of examining the potential of AI in transforming the insurance industry, the workshop served as a platform for industry players from different segments to discuss how AI could revolutionise their business processes and enhance customer interactions.

Monica Nwachukwu,in her capacity as the chairman of the ORC,Office Representatives Committee spoke on the crucial role that AI plays in modernising the insurance industry, pointing out its ability to automate customer and claims processes, enabling insurers to provide faster and more efficient services to their customers.

Nwachukwu further elaborated on how AI could enhance data extraction from legacy systems, thereby improving decision-making processes within the industry.

“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service,” she stated.

Orlando Odejide, managing partner of A4S and Training Heights, discussed the importance of companies aligning their strategies with cutting-edge technologies like AI as they navigate the rapidly evolving landscape of the insurance industry.

Odejide asserted that organisations must prepare themselves for the future, as AI is poised to revolutionise the insurance sector in the coming years, particularly in light of the imminent arrival of 2025, a year that many industry experts predict will mark a significant shift in the role that AI plays within the insurance sector.

“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October,” he asserted.

Odejide challenged the workshop participants to engage in strategic thinking about the role of AI in their respective business models, emphasising the importance of staying competitive in the rapidly changing landscape of the insurance industry.

In his address, Jimi Fasina, co-founder and Chief Executive Officer of Tsaron Technologies, Limited, dwelled on the need for insurance companies to harness the power of AI-driven solutions to boost various aspects of their business operations, especially in the areas of sales and marketing.

Fasina underscored the vast potential that AI holds for streamlining and improving the effectiveness of sales and marketing efforts within the insurance sector, providing companies with a competitive edge in the increasingly digitised and interconnected insurance sector.

He stated further, “Organisations need to rethink their processes and leverage AI to improve areas like sales and marketing, ensuring they can both attract and retain customers effectively.”