Stakeholders advocate automation to reposition insurance sector
IN consideration of the current economic situation in Nigeria, experts in the insurance industry have stressed the need for underwriting firms to examine risks, consolidate gains and invest in new technologies.
These, they claimed, would make them remain competitive in the market.
The industry experts, who spoke to The Guardian at the weekend, suggested that in 2024, insurance operators would need to automate claims, drive higher customer engagement as well as increase workforce and agents with artificial intelligence ( AI) capabilities.
This, they said, will be fueled by new real- time data streams to make better, more informed underwriting and pricing decisions for the market.
Speaking specifically on the development, the Group Chief Executive Officer, Consolidated Hallmark Holdings Plc; Eddie Efekoha, expressed confidence in the market reconfiguration last year, stressing the importance of increasing digital channels to boost wider distribution of products and services.
Efekoha said in the New Year, there are expectations of higher adoption of technology. He said insurers are attempting to be tech- enabled, mastering data and its many sources to quickly evaluate and price risk, as well as serve customers when they need to purchase insurance.
"As they've seen in other industries, this is possible with a flexible technological base and strategic IT function. But most organisations still have a long way to go to be truly tech- enabled, as opposed to just digital," he stated.
Looking forward, some other players in the sector also predicted that with the current efforts by the Central Bank towards stabilisation of interest rates, organisations are expected to transition from a passive acquisition approach to a more strategic one.
According to the Chief Executive Officer of FSL Insurance Brokers Limited, Alfred Daudu, this year, the insurance industry is expecting economic activities to grow, so that the sector will also grow.
He urged underwriting firms to initiate more lucrative products that could address Nigerians in their areas of need rather than duplicating existing products and do more on industry awareness.
"In 2024, there's going to be a continued emphasis on digital transformation with a focus on automating processes, enhancing customer experience, and improving operational efficiency," he said.
Already, the latest report by Globaldata about the insurance industry this year, predicted that Nigeria's insurance market is expected to achieve a Compound Annual Growth Rate ( CAGR) of more than 10 per cent between 2023- 2027.
Globaldata Limited provides business information reports and services. The firm also offers research reports, news, forecasts, bespoke data analysis, market analysis, contract and industry information, and consulting services.
This is coming even as the National Insurance Commission ( NAICOM), towards the end of 2023, formulated a seven- point agenda aimed at a transformation agenda in the sector.
The commission said it's relying on its 10- year strategic roadmap for the insurance sector as well as a guidance note for the insurance of government assets and liabilities.
The Commissioner for Insurance, Sunday Thomas, said over the next decade ( 2024- 2033), the insurance industry would seek to continue its transformation journey along the following seven strategic thrusts to achieve the corresponding goals.