Stakeholders in the insurance industry have stressed the need for players in the sector to adopt artificial intelligence (AI) and innovation to drive the sector’s penetration.

They also said AI could address the negative perceptions that Nigerians have about the insurance industry, particularly around claims payments. According to them, by using AI to make insurance policy subscriptions and claims payments faster and easier, the industry can build trust and confidence among Nigerians, ultimately leading to the growth of the sector.

Speaking at the Ambassadors Project on Insurance Awareness at the Lagos State University (LASU), the Chief Distribution Officer, AXA Mansard Insurance Plc, Jumoke Odunlami, said AI would play a crucial role in bridging the knowledge gap.

Odunlami said the technology would help get insurance into the hands of more Nigerians and address some of the issues that are fuelling distrust for insurance products.

“Sometimes, knowledge comes from experiencing a product. When you use it, you understand it better. Technology is a tool that can give that level of access.
“For example, through our telecoms and fintech partners, we are reaching over 1.5 million Nigerians with micro-insurance. These are people who could have been deprived of the opportunity to try out insurance. But through USSD and savings apps, we are now reaching them, and they are enjoying the benefits of insurance. That is the power of technology.

“While we are reaching more people and getting them to try out insurance, AI will play a crucial role in ensuring that their expectations are not cut short. We understand that the insurance trust is still fragile and if we reach more people and cannot keep the promise, we will break the trust and lose the opportunity to educate them,” she said.

The insurance expert noted that while pricing and risk assessment remain vital to insurance operations, educating the public is key to trust building. Also speaking at the programme, the Chief Executive of Consolidated Hallmark Insurance, Mary Adeyanju, said the industry’s future depends on embracing technology, driving innovation and ensuring inclusivity.