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AI Set to Transform Insurance and Pension Sectors, Boosting Market Penetration

TL;DR

  • AI boosts insurance & pension sectors’ efficiency and customer service in Nigeria.
  • AI to bridge market penetration gaps in Nigerian insurance & pensions.
  • Unlocking market potential with AI in Nigeria’s financial sectors.

Artificial intelligence can alter the way people are reached in terms of selling products and services. This was noted by industry experts at the 8th Annual BusinessToday Conference held in Lagos, Nigeria. Technological development, especially the adoption of AI, is lucrative currently when it comes to limited penetration rates because insurance has a 0.4% share, and only 10.2 million workers are enrolled in the Contributory Pension Scheme in a country of 200 million people.

Unlocking Potential through AI

The Managing Director/CEO of Cowry Asset Limited and the theme paper presenter at the conference focused on how the pension and insurance sector in these yet-to-be-explored markets is a huge area. He remarked that according to scientific evidence, AI can automate regular tasks and quickly increase performance, which will further expand its development conversely in the mass market. 

Chukwu noted that insurance penetration, at about 7% worldwide, spells a great opportunity and practically a wide gap for the sector’s much lower figure in Nigeria. He used Access Bank’s performance as a case in point to discuss the future integration of AI in the insurance sector to increase customer satisfaction, build their trust, and reduce system costs.  

Enhancing efficiency and customer service

Through an analysis and an evaluation of processes, procedures, and internal procedures, we aim to improve the overall efficiency of our operations and to increase service and customer satisfaction. AI can overhaul customer care and the claims process in the insurance industry by putting people to task quicker and with higher accuracy, which can greatly improve outcome payment. With this technology, customers in Nigeria can register for insurance policies easily and receive prompt payment.

 This would bring the skepticism into reality and make insurance professionals in the country. AI assists in the improvement of the pension industry by supporting the management of the mass market on the basis of their behavioral patterns that differ from the herd and consequently lead to more efficient and accurate service. The use of AI by financial companies may significantly reduce the time required for processing, data capture, and expense.

Micro-insurance and pensions in a Bridge to Fortune

Additionally, the seminar highlighted the capacities of micro-insurance and micro-pensions to penetrate the market better. AI’s role in reducing the costs of selling insurance and pensions was emphasized as one of the main factors to ensure the ease of processes in the industries and also to build trust and confidence in the consumers. 

Chukwu opined that it is the Nigerian insurance business that is on the verge of a disruption that may arise from AI, eventually resulting in more accurate data collection, analysis of investment portfolios, and increased efficiency in the decision-making process both for providers and their customers. With the financial services sector playing a critical role in derisking the economy, CIIN’s board president, Igbiti, highlighted the importance of government partners and stakeholders in achieving deeper penetration of insurance coverage.

 According to Igbiti, AI can promote insurance premium income growth reform to provide minimum service delivery to clients. Moreover, AI increases the sector’s contribution to the Gross Domestic Product (GDP). The conference also addressed the challenges of inspection in increasing insurance uptake, which caught the attention of the chairman of NEMI Insurance Plc, Tope Smart, who suggested crafting a stronger regulatory and enforcement mechanism to improve insurance awareness in Nigerians.

Discovering the participation of AI

Held under the theme “Inpwith AI: Insurance, Pension, and the Future of Investment,” the conference indicated the potential of AI in insurance, pension, and the investment industry by increasing consumer bases and enhancing the delivery of services and enhancement of customer value.

 AI, through its implied ability to revolutionize underwriting, customer relations, advertising, claims, and fraud prevention, gives leaders great hope in overcoming challenges today and witnessing exceptional progress tomorrow. The Nigerian authorities looking to grow their insurance and pensions markets are acting wisely when seeing AI as not only a thoughtful but an inevitable factor of future success.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Glory Kaburu

Glory is an extremely knowledgeable journalist proficient with AI tools and research. She is passionate about AI and has authored several articles on the subject. She keeps herself abreast of the latest developments in Artificial Intelligence, Machine Learning, and Deep Learning and writes about them regularly.

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