Digital era set to define Nigerian insurance market

The emerging digital era is set to define the Nigerian insurance market, according to a leading Nigerian insurance player. Speaking at the 2019 Insurance Professionals Forum at Abeokuta, Ogun State, on the theme, ‘The Digital Era: Implications for insurance Professionals’, Eddie Efekoha, president and chairman of council at the Chartered Insurance Institute of Nigeria (CIIN), said: “The digital era is here and artificial intelligence is playing a major role in its evolution. More organisations are embracing the idea of a single microchip processing multiple functions. “Indeed, the future that artificial intelligence promises for insurance is a series of touchless processes, from premium collection through to the entire claims process. Big data is all around us, ready to be harnessed and put to use.” He suggested that insurers should be considering whether, as an industry, they are leveraging on technology to simplify data analytics to: Make pricing of insurable risks more accurate Enhance self-servicing of customers through interactive websites Tweak sales practices in line with customer needs and wants, in order to improve profitability Boost cost efficiency Maximise overall performance. “Importantly,” Mr Efekoha added, “artificial intelligence has never been less expensive or inaccessible. The question that arises however is: what is the role of the modern-day insurance professional as this evolution plays out and what will it be when this evolution attains its full cycle? How will they stay relevant in an artificial intelligence-driven society?” He warned that any insurance professional who wants to remain relevant must see the opportunities as well as the threats posed by this digital era. He added that as someone who has been part of the insurance industry for years, it is a shame that Africa’s biggest economy – Nigeria – has an insurance penetration rate of about 0.3%. Mr Efekoha insisted that, while the ongoing recapitalisation in the insurance industry is important, of equal importance is the need for market development. “As we embrace digital, we should not overlook the dangers posed by cybercrime around us. Cybercrime isn’t a myth, it is real. The National Information Technology Development Agency stated that in 2017, Nigeria lost $500m to cyberattacks, a figure up $50m from the year before. “Globally, these numbers are even bigger and it is projected that damage related to cybercrime will hit $6trn annually by 2021. This Trojan horse is a big threat to professionals. As managers of businesses, we must keep abreast of the dangers it poses to businesses. Unless we control this threat, we may have no relevance in the near future; that is if we still have businesses to run.” The CIIN president said the relevance of the younger generation in this era of artificial intelligence has been brought to the fore by the institute. “Making its debut in this forum is a conversation strictly for the next generation. They will be talking about the expectations and roles of the youth as leaders of tomorrow in the insurance industry.”

Digital era set to define Nigerian insurance market

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