To revolutionise insurance business and boost the sector’s contribution to GDP, there is the need for operators to advance in technology adoption of its offerings.

At the second edition of the United Capital Securities CEO Breakfast Forum held in Lagos at the weekend, the Commissioner of Insurance, Sunday Thomas, said operators in the industry must jettison the traditional method of operations and embrace a more effective business model to deepen product penetration in Nigeria and make the industry more competitive in the global market.

He restated the Commission’s resolve to create an enabling environment that would help deepen insurance penetration in Nigeria.

According to him, as the evolution of the industry accelerates, insurers must adjust their strategies to align with current realities in preparedness for emerging opportunities.

“We have the responsibility of creating an enabling environment. Two years ago, we tried to set the minimum standard for technology deployment in our operations and that is why some of our initiatives are more or less trying to compel the operators to align with technology.

We have a quality control unit in our IT department; these are some of the things we are doing in the background.”
Thomas also stressed the need for active collaboration between operators and Insurtech, noting that such a partnership would boost efficiency in the industry.

“We are encouraging partnership between Insurtech and the operators in the market. A broker can no longer be what a conventional broker is if he wants to survive, he should be pursuing a big ticket that counts and gets the distribution of products to these people and that is why partnership is very central.

“Insurtech knows the demographic that is big in this area. They know how to address their own needs. What we are encouraging is for them to come forward, we want to recognise them and know those that want to operate in the sector so that we can assess them and onboard them,” he said.

Head, Financial Institutions Rating at Agusto and co, Ayokunle Olubunmi, said there must be strong commitment from the highest authorities to drive greater adoption of technology in corporate organisations.

According to him, corporate organisations must have a dedicated and detailed digital technology team to push implementation plans.

He listed hindrances to technology adoption to include mindset, funding, commitment from the top among others, noting that detailed adoption helps to achieve increased cost optimisation.

Group Chief Executive Officer, United Capital Plc, Peter Ashade, in an opening address said the insurance industry has witnessed remarkable changes from the adoption of Artificial Intelligence for underwriting and claims, processing and use of big data analysis for risk assessment.

He said although the insurance contribution to the Gross Domestic Product (GDP) is currently at less than two per cent but expressed optimism that the sector would record remarkable improvement with technology shortly.

“Insurance sector will be a very strong and vibrant sector to reckon with in the Nigerian financial services sector in no distant time. Technology is not just an enabler any longer but a catalyst for growth, efficiency and improved customer experience.

“Our goal for 2023 and beyond for the Nigerian insurance space, should be to fully harness the benefits of our technology investment and make insurance increasingly agile, innovative and customer-centric,” Ashade said,” he added.