The insurance industry is grappling with a significant challenge as it increasingly adopts technological applications like Artificial Intelligence (AI), according to industry experts. While these technologies are enhancing services, there’s growing concern that the human element—crucial for building sustainable customer relationships—is rapidly diminishing.
Industry leaders emphasize that training and retraining insurance professionals remains essential, as human presence is still critical for customer confidence. This point was underscored by Mr. Akinsola Ale, Managing Director/CEO of Nigeria Reinsurance Corporation, during a comprehensive training program titled “Reinsurance Accounting System and Claims Handling.”
“The training was specifically designed to target accounting systems and claims handling to upscale participants’ underwriting skills,” said Ale. He revealed that the company has scheduled additional training sessions for practitioners, noting that while the current program focused on non-life operators, similar training for life operators would be organized before year-end.
Ale emphasized that reinsurers have consistently met their claims responsibilities when called upon by insurers, stating that both reinsurers and insurers make significant sacrifices to ensure payment of insurance claims.
Addressing Nigeria’s deployment of AI in claims settlements, Ale explained in a recent interview: “It is essential for any company to position itself in alignment with AI. Nigeria Re plans to use AI in analyzing huge data, creating clear distinctions in claims management processes while redefining task assignment procedures.”
He highlighted that AI delivers efficient results, effectively identifies potentially fraudulent transactions, ensures quick outcomes, and reduces costs. “There are still other areas in the insurance business where AI will create ease for officers in the organization,” Ale noted, adding that “Nigeria Re is planning to take effective steps to actualize the required transformation.”
On collaboration with Africa Re, Ale remarked that despite being competitors, both companies collaborate in various aspects of the insurance business, including claims reconciliation.
The Nigeria Re boss described the training as part of the corporation’s commitment to providing top-notch services to customers, colleagues, and industry stakeholders. “It is a social responsibility to impact the environment and people in Lagos, Nigeria, and the world,” he said.
Regarding language barriers, Ale acknowledged that while Nigeria is largely English-speaking, the corporation would take steps to accommodate individuals from regions where English isn’t the primary language. “For international trainings, plans would be put in place to provide interpretation when the time comes. All possibilities to reach the wider public will be reviewed and discussed with the aim to ensure inclusion without barriers,” he added.
Jetho Jhamnani, Managing Director/CEO of GIC Re South Africa Limited, explained that his firm partnered with Nigeria Reinsurance due to its belief in the Nigerian insurance market.
The training aimed to expose participants to reinsurance companies’ expectations regarding accounting and claims handling.
On the matter of prompt claims settlement, Jhamnani urged all stakeholders—reinsurers, insurers, and policyholders—to fulfill their responsibilities to ensure timely payments.
Varum Bhardwaj, Chief Operating Officer of GIC Re South Africa Limited, added that the training would significantly improve participants’ ability to handle claims promptly, as they have been exposed to all necessary processes for ensuring timely settlements.
Article written by Ade Adesokan, an insurance expert in Nigeria.
