The stakeholders in the insurance industry are insisting that the industry’s investment on technology should be increased in order to improve the industry’s performance.
The insurance penetration in Nigeria has been one per cent for the last three decades due to the a lot of factors, one of which is the fact that Nigerians are reluctant to buy policies.
During various stakeholders’ meetings’ across the country, speakers have vehemently expressed their displeasure on the lack-lustre attitude of the operators and stake holders towards the use of technological tools to increase patronage of insurance products by the masses.
At the 2019 National Insurance Conference in Abuja, President Muhammadu Buhari encouraged insurance companies to adopt technological innovations because the absence of this is the main cause of the poor performance of the insurance industry.
The Federal Ministry of Finance, represented by the Permanent Secretary, Mahmud Isa Dutse stated that the employment of digital technology in the insurance processes would enable insurers to perform their duties in a more efficient and quicker way.
He pointed out that the mastery of digital innovations such as aerial and digital imagery, virtual reality, online sales technologies, machine learning, advanced analytics, Internet of Things (IoT), etc is actually advantageous.
This, he said is because; artificial intelligence for example can can make claim settlement faster, advanced analytics can can ultimately lead to the growth of companies and also, blockchain technology is an easy and effective way to transmit information across multiple organizations.
“All these advantages help in reduction of cost incurred from day to day operations, fraud management, and secure data availability.
Of a truth, technology is actually the answer to majority of the challenges faced by the insurance industry” he said.
The former Commissioner for Insurance, Alhaji Mohammed Kari, also supported the fact that digital technology needs to be taken advantage of by the insurance industry, irrespective of the current disruption the industry may be facing due to the introduction of the technology.
Kari said that insurers would benefit from digital technology only if they wholeheartedly embrace it and take advantage of it, while doing their possible best to curb the attendant negative effects as this is the only way for them to remain relevant and contribute to the growth of the economy.