Stakeholders in the insurance industry across Africa have said that the optimal adoption of artificial intelligence (AI) is needed to increase penetration and growth in the economic value chain.
Insurance experts who gathered at just concluded the West African Insurance Companies Association Conference in Accra, Ghana, described Al as a technology that enables a computer or computer-controlled robot to perform tasks commonly associated with human beings—such as the ability to have human-like conversations, reason, discover meaning, generalise or learn from experience.
The Al technology, according to them has gained so much popularity in businesses that analysts put global business value earned through artificial intelligence at $3.9 trillion in 2022, from $1.2 trillion in 2018.
With the lack of awareness of the problem of insurance and Nigerians’ alienation from insurance services, the technology is believed to be capable of bridging the gap between the masses and insurers, helping to bring insurance very close to the people.
Speaking at the conference, on a theme paper “Artificial Intelligence and the Future of Insurance in West Africa,” the Sector Head of Heirs Insurance Group, Niyi Onifade, called for adopting Artificial Intelligence (AI) to revolutionize insurance in West Africa.
He outlined how AI is revolutionising the insurance experience by automating processes such as claims management, enhancing risk assessments, and providing personalised customer service.
According to him, AI is not just an innovation but a gateway to the next generation of insurance. The insurance penetration rate is much lower in our sub-region, West Africa. AI offers an unprecedented opportunity to reach more customers, reduce operational costs, and enhance customer experience.
The insurance consumer of today is more digital than before and will become much more digital in the future. Our industry has to scale up on digitalisation to meet the needs of today and tomorrow,” he said.
Onifade further highlighted Heirs Insurance Group’s leadership in integrating technology, particularly AI-driven solutions, to enhance customer experiences, improve risk management, and drive financial inclusion.
He emphasised the Group’s investment in digital platforms that streamline operations and expand access to underserved populations.
The 2024 Education Conference served as a crucial platform for dialogue on the future of insurance in the region.
He called on West African stakeholders to collaborate in adopting AI and developing supportive regulatory frameworks to foster innovation and protect consumer interests.
He said: “We must act now to seize this moment and change the landscape of the insurance sector.”
Also in the industry, the Commissioner for Insurance, Segun Omosehim, told underwriting firms that he has seen AI as key to the future of insurance business in Nigeria.
However, urged insurance operators to adopt the technology. For Customer Service, he pointed out that, AI tools such as chatbots, a virtual assistants, can help to improve customer experience, saying, Chatbots are available 24/7 to give basic advice, check billing information, and address common inquiries and transactions, as it can be deployed to recapture customers’ data more effectively, even as it can more effectively analysis investment portfolios and recommend necessary actions such as sell, buy, hold, among others.
Advancement in AI, he noted, is underpinned by the drive for convenience and efficiency, which are the two most important competitive tools in the business world, stating that, businesses and industries that want to remain relevant in the economic ecosystem will therefore need to embrace AI as an integral part of their business DNA.
He said AI technologies would allow insurers to draw on larger datasets to improve their processes, from automating customer support to honing risk modeling and predictions.
