The Role of Artificial Intelligence in the growth of Insurance Industry in Nigeria

Artificial Intelligence (AI) is revolutionizing industries worldwide, including the Nigerian insurance industry. Imagine a future where filing a car accident claim is as easy as chatting with a friend. This is not a distant dream but a reality unfolding with the integration of AI in insurance.

To understand its impact, let’s explore its various applications, benefits, and how it enhances customer experience and personalization.

Coronation Insurance is committed to leveraging the power of AI to enhance customer experience, streamline processes, and improve risk management. Here’s a closer look at how AI is applied at Coronation Insurance:

1. Claims Portal: AI has revolutionized the claims processing system at Coronation Insurance. This aspect of insurance operations is crucial for customer satisfaction and operational efficiency. With AI-powered systems, Coronation Insurance can now:

• Analyze claim documents: AI algorithms can quickly review and analyze large volumes of claim documents, ensuring that all necessary information is included and reducing the time needed for manual reviews.

• Validate information: The systems can cross-check the details provided in the claims against existing data to ensure accuracy and completeness. This helps in minimizing errors and speeding up the claims approval process.

• Facilitate settlement of claims: The streamlined process ensures that genuine claims are settled promptly, enhancing customer satisfaction and loyalty.

2. Marine Portal: The Marine Portal at Coronation Insurance leverages AI to improve customer experience for marine-related transactions:

• Online purchase of Marine Insurance: Customers can conveniently purchase marine insurance policies online. AI assists in providing tailored policy options based on the customer’s specific needs and previous transaction history.

• Smooth transaction process: From obtaining quotes to finalizing the purchase, AI ensures a seamless transaction process. Automated systems handle the entire workflow, reducing the need for manual intervention and making the process quick and hassle-free.

3. Retail Portal: Coronation Insurance’s Retail Portal is designed to offer customers a seamless experience when purchasing retail insurance products from the comfort of their homes:

• Personalized product recommendations: AI analyzes customer data to provide tailored product recommendations that best suit their needs. This ensures that customers receive relevant options without having to sift through numerous products.

• Ease of purchase: The entire purchase process is automated, from selecting a policy to making payments. AI ensures that the process is user-friendly and efficient, reducing the time and effort required from the customer.

Benefits and Challenges of AI Integration in Insurance

Benefits:

• Enhanced efficiency
• Improved customer satisfaction
• Better decision-making

Challenges:

• Technological limitations: The low level of technological advancement in Nigeria poses a challenge to widespread AI adoption.

• Data availability: Effective AI implementation requires access to vast amounts of data, which may be limited in some cases or unavailable in Nigeria.

• Skill gap: There is a need for skilled professionals to develop and manage AI systems.

The Difference Between Manual Systems and AI Applications

Initially, Nigerian insurers focused on automating routine tasks and back-office operations. However, as technology advances, AI has begun playing a pivotal role in risk assessment, fraud detection, customer engagement, and product innovation.

Muftau Oyegunle, the Past President/Chairman of the Chartered Insurance Institute of Nigeria (CIIN), emphasises the significance of discussing the impact of artificial intelligence on the insurance industry, as it plays a substantial role in the evolving world of insurance.

He highlights that AI algorithms can now assess risks by analyzing historical data, making accurate pricing forecasts, and automating underwriting processes. This speeds up policy issuance and ensures more accurate risk assessment and pricing.

Impact of AI on Insurance Penetration

AI can significantly increase the low penetration rate by making insurance services more accessible and efficient. AI-driven personalized services can attract more customers, especially the tech-savvy younger generation. Automating processes can reduce operational costs, making insurance products more affordable.

Ultimately, AI holds immense potential to transform the Nigerian insurance industry. For AI to achieve its full potential, however, there needs to be higher collaboration among insurance practitioners, increased technological advancement, and a focus on building the necessary skills.

See the table below showing Insurance Africa Penetration as at 2021 (Source: Atlas Magazine)

African Insurance Penetration Rates in 2021

The table above highlights the significant gap in insurance penetration between Nigeria and other African countries.

With Nigeria’s total insurance penetration rate at just 0.4%, compared to South Africa’s 12.2% and Namibia’s 7.1%, it underscores the urgent need for innovative solutions like AI to boost accessibility and efficiency in the Nigerian insurance sector.

For more information, visit our website: www.coronation.ng to get started. Call 02-012774500 | 02-012774566 | 02-012774577 or send an email to [email protected].