Artificial intelligence (AI) is critical to the future of the insurance industry in Nigeria, according to Mr. Sunday Thomas, Commissioner for Insurance and CEO of the National Insurance Commission, or NAICOM.
Speaking on behalf of the Deputy Director of the Lagos Office of NAICOM, Ajibola Olabisi Bankole, Thomas gave a keynote address at the 8th BusinessToday annual conference & exhibition in Lagos with the theme, “The World of AI: How Insurance and Pension Sectors Can Explore Opportunities for Market Penetration.” He urged insurance operators to increase adoption of this technology because it improves productivity and profitability while guaranteeing prompt service delivery and payment of insurance claims to customers.
According to him, the insurance industry’s 10-year plan includes the adoption of technology. As a regulator, NAICOM will keep developing rules that would spur industry expansion, boost penetration, and boost the GDP of the country.
Earlier in his Goodwill speech, Mr. Tope Smart, the chairman of NEM Insurance Plc and the conference chairman, mentioned the level of insurance penetration in Nigeria in comparison to the global penetration and stated that numerous factors contributed to the rise in penetration.
He acknowledged that low or nonexistent enforcement is having an impact on the uptake of mandatory insurance policies, but he also stated that the industry is making a concerted effort to collaborate with enforcement agencies in order to boost insurance uptake.
“It is rather depressing that only roughly three million of the 200 million individuals in the world have health insurance. Although a problem, the sector is constantly striving to strengthen enforcement through the regulatory and enforcement agencies.
Policy renewals are being impacted by consumers’ indifference because of negative past experiences, but I can reassure Nigerians that there are numerous channels available for filing complaints. You can contact the Nigerian Insurers Association (NIA) and NAICOM if your rightful claims are not resolved; if your grievances are sincere, they will undoubtedly be addressed, he promised.
The nation’s economy must be derisked in order to accommodate the expanding insurance industry, according to Mr. Edwin Igbiti, President of the Chartered Insurance Institute of Nigeria (CIIN), which is also looking to collaborate with the government and other stakeholders in order to increase insurance penetration.
According to his argument, artificial intelligence (AI) would boost the growth of insurance premiums, improve service delivery, and guarantee that the insurance industry increases its share of the GDP of the country.