The increasing adoption of technology applications, like Artificial Intelligence (AI) and recent wave of migration of skilled workforce for greener pastures, otherwise called ‘Japa’ is having a huge toll on the insurance industry.
According to industry experts, while adoption of these applications are enhancing services, the human element and experience, which should build confidence for sustainable relationship with customers, are fast disappearing.
This is why the importance of training and retraining of insurance professionals cannot be over emphasised because human presence is still a critical need to build customer confidence, according to Fola Daniel, chief executive officer, FBS Reinsurance Limited.
Daniel made the observation on the side-line of a training program anchored jointly by FBS Reinsurance and Munich Reinsurance of South Africa held recently in Lagos, which aims at addressing technical knowledge gaps in the insurance industry.
He said “a good number of underwriters presently rely on software applications to do their underwriting. Experienced driven underwriting is fast fading away.”
He said, “Of course, in an era of artificial intelligence, there is virtually no subject you cannot interrogate and get an answer for, but you still need experience, as there are aspects of insurance that artificial intelligence cannot do for you.”
“For instance, marketing. People need to see your face; you need to talk about the company profile. You can do that in prints, but it creates a better impression when they meet you, speak with you and ask questions which answers cannot be obtained from the publications on your website.”
According to Daniel, the purpose of the training, having recognized the knowledge gaps, in the Nigerian and other African market, is to bridge the technical knowledge gaps, thus impacting the much-needed knowledge.
“I do expect that participants would be better informed. Though, the training is not covering every facet of technical insurance, what we are focusing on is fire insurance, consequential loss and a bit of reinsurance accounting.”
Leadway Assurance Company Limited recently unveiled the “Leadway VehiScanner”, an artificial intelligence-enabled tool available on mobile devices to transform the vehicle assessment process, allowing users to scan vehicles, identify damages, facilitate pre & post loss inspection, get the instant inspection report, and accelerate claims requests processes for policyholders, all done conveniently from their mobile devices.
“With the Leadway VehiScannerAI, we eliminate the tedious and time-consuming traditional vehicle inspection process that requires policyholders to visit physical inspection centres. This AI-powered tool helps the policyholders perform comprehensive inspections remotely and conveniently via their mobile phone and instantly gets a robust result of inspections and areas that require attention”, Tunde Hassan-Odukale, chief executive officer of Leadway Assurance.
As AI-powered tools and algorithms become increasingly prevalent in the insurance sector, it’s likely that they will automate many routine tasks and decisions, which could potentially erode the expertise and experience of human executives. This could lead to a shift in the way insurance companies operate, with AI systems taking on more responsibility for data analysis, risk assessment, and policy issuance.
However, it’s also important to note that AI is not meant to replace human judgement entirely. Instead, it can be designed to augment and support the decision-making processes of insurance executives, providing them with more accurate and data-driven insights to inform their decisions.
To mitigate the potential negative effects of AI on executive experience, insurance companies may need to invest in training programs that help their executives develop new skills and adapt to the changing landscape. This could involve teaching them how to effectively work with AI systems, as well as how to interpret and make decisions based on the complex data and analytics that these systems provide.
Ultimately, the key will be to strike a balance between the benefits of AI technology and the importance of human expertise and experience in the insurance industry.
