Insurance operators have identified innovation in service delivery, product development and digitalisation as critical strategies in taking advantage of opportunities offered by the African Continental Free Trade Area (AfCFTA).
They believe that, AfCFTA objective to bring 30 million people out of extreme poverty and to raise the incomes of 68 million others who live on less than $5.50 per day will impact the insurance industry.
The insurers outlined their views on how to take advantage of AfCFTA following resolutions reached at the recently concluded 47th African Insurance Organization (AIO) Conference in Lagos.
Babatunde Fajmirokun, group managing director/CEO, AIICO Insurance Plc, said, there is need to harness the potentials of AfCFTA for growth and development in the Nigerian insurance market.
He also sees the need to develop new insurance products and solutions, especially, in the property and casualty segments.
This, he said, is in readiness for the systemic nature of climate induced damages, while calling for increase access through digital innovation and wider distribution.
Read Also: Insurers want regulatory integration to optimize benefits of AfCFTA
On claims payment, Fajemirokun tasked operators to leverage on a wide range of digital ecosystems so as to take out or reduce manual interventions in claims related tasks.
According to him, this initiative will stimulate improvements in claims processing, administration as well as fraud detection operations.
Joyce Ojemudia, managing director/ CEO, African Alliance Insurance Plc, noted that digital expansion and continuous training of staff, are keys the industry needs to tap into the opportunities provided by the AfCFTA
According to her, the world is totally digital and for the industry to improve it must be totally committed to digital expansion.
She also added that local and intentional collaborations will be critical to scaling “our impact and deepening penetration in Nigeria as well as on the continent. ”
Ademuyiwa Adeduro, managing director/CEO, Tangerine Insurance Plc, noted that claim settlement is key to the core value proposition of the industry.
“It’s expected that players will key into ever evolving technology in up-scaling service delivery with respect to claims management the use of drone, robotics and artificial intelligence and electronic payment platform and synchronization of enterprise resource programs will assist the industry in better claims management, prevention of fraudulent claims and availability of data for decision making.”
He also noted that product development is no longer a buzz words. “It is either we innovate or will die. One thing for sure is that insurance will not die but some companies may die due to lack of innovation.”
He added that cyber risk cover and technology enabled services are areas seeking innovative products from the industry.
Adewale Kadiri, executive director, Technical, AIICO Insurance Plc, noted that, some companies have been committed to prompt claims payment and will continue to do so as long as they are in business.
“The conference has added color to the need to enhance our reputation as an industry and I think prompt claims payments can assist us to achieve the desired heights,” he pointed out.
Kadiri also noted that it is imperative to invest in R & D to facilitate product developments in the industry.
“There are a lot of emerging risks which needs insurance covers. But there is need for reinsurance support to enable insurers get required capacity and underwrite the business on a large scale except you want to take the risks for your Net account which may not be significant.”
Leveraging on the federal and state government participation at the conference, Benjamin Agili, managing director/CEO, Royal Exchange Assurance Plc urged the regulator and the umbrella body to continue their engagement and enforcement of market rates and compulsory insurances.
According to him, “these relationships have to be on-going and NAICOM, the NIA as well as NCRIB need to take the relationship to the next level. Lobby group within the industry to scale up the relationship are also important.”
