• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Saturday, June 7, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

AI To Trigger Huge Leap In Insurance, Pension Penetration, Says Experts

by Zaka Khaliq
1 year ago
in Business
Share on WhatsAppShare on FacebookShare on XTelegram

Artificial Intelligence (AI) adoption by underwriters and pension fund operators will trigger a huge leap in insurance and pension penetration in the country, experts.

Advertisement

Currently, insurance penetration is at 0.4 per cent while about 10.2 million workers have subscribed to the Contributory Pension Scheme (CPS) in a country of over 200 million people.

While experts, who spoke at the 8th BusinessToday Annual Conference in Victoria Island, Lagos, yesterday, applauded operators and regulators of both sectors for achievement recorded in recent times, they felt this is mere scratching the surface compared to what the industry can pool with AI adoption.

The Theme Paper Presenter who is the managing director/CEO of Cowry Asset Limited, Johnson Chukwu, disclosed that, the uncovered market in both pension and insurance sectors show opportunities, especially, in the mass market where it costs more to cover.

 

RELATED

Bitget Hosts Blockchain Education Day To Foster Web3 Awareness Growth

Bitget Hosts Blockchain Education Day To Foster Web3 Awareness Growth

7 hours ago
2025 Budget: Outcry As Agency Appropriates N6bn On Frivolities

2025 Budget: Outcry As Agency Appropriates N6bn On Frivolities

9 hours ago

According to him, AI is a simulation of human intelligence into a machine format such that the machine can do things that are routine in nature, faster.

 

Disclosing that the global average of insurance penetration is about 7 per cent, he said, Nigeria is far behind with its 0.4 per cent even as it also shows there is room for growth.

 

Using Access Bank as a case study, he said, the bank’s Assets andProfitability far outweighs that of the entire insurance industry last year, believing the industry can get to that level in few years to come with the adoption of artificial intelligence, saying, it remains a compass for organisations to achieve their objectives.

 

He stressed that, with this technology, the negative reservations that most Nigerians have about insurance and claims payments will be wiped out as it makes insurance policy subscription and claims payments seamless and faster.

 

The Nigerian Insurance industry, according to Chukwu, will benefit greatly by adopting AI as it will improve their customers’ experience, engender confidence and trust, improve service quality and reduce costs, adding that, AI holds the promise of transforming the traditional insurance landscape by addressing critical challenges, disrupting existing norms, and optimising risk management processes.

 

On how AI can transform the pension industry, he said, AI can be deployed to support Pension service provision to this mass market given the relative uniformity of their needs, noting that, AI can easily identify unusual patterns and deviations from norm and consequently flag it for management attention.

 

Saying, it would enhance service efficiency, he stressed that, decrease in cycle would leads to faster execution, improved accuracy, detailed data capture flexibility & scalability, improved productivity and reduced operational costs.

 

“With AI, you can settle claims within some hours or days on motor insurance. No doubt, AI will help in improving claims settlement. AI can harvest records of the insured in terms of making claims, which will enhance accurate pricing of policy and for the insured,” he said.

 

For Customer Service, he pointed out that, AI tools such as chatbots, a virtual assistant, can help to improve customer experience, saying, Chatbots are available 24/7 to give basic advice, check billing information, and address common inquiries and transactions, as it can be deployed to recapture customers’ data more effectively, even as it can more effectively analysis investment portfolios and recommend necessary actions such as sell, buy, hold, among others.

 

Advancement in AI, he noted, is underpinned by the drive for convenience and efficiency, which are the two most important competitive tools in the business World, stating that, businesses and industries that want to remain relevant in the economic ecosystem will therefore need to embrace AI as an integral party of their business DNA

 

Micro-insurance and micro pensions are a mass market. AI will cut the cost of selling insurance for underwriters and pension for the Pension Fund Administrators (PFAs) as it will improve customers experience, reduce cost, engender confidence in both industries. It is obvious the Nigerian insurance industry needs disruption through AI, he emphasised.

 

Earlier, the president, Chartered Insurance Institute of Nigeria(CIIN), Edwin Igbiti, said, growing the insurance industry will require that the nation’s economy be derisk, while seeking partnership with government and other stakeholders to deepen insurance penetration.

 

He submitted that AI will increase insurance premium growth, enhance service delivery and ensure the insurance sector contributes more to the nation’s Gross Domestic Product(GDP).

 

The conference chairman who is the chairman of NEM Insurance Plc, Tope Smart, was unhappy with the level of insurance penetration in Nigeria when benchmarked with the Global penetration, noting that a lot of factors were responsible for this.

 

He said, lack or low enforcement is affecting the adoption of compulsory insurances even as the industry is working assiduously to partner agencies responsible for enforcement so as to increase insurance adoption.

 

“It is quite saddening that out of a population of 200 million, only about 3 million people are actually insured. Lack of enforcement is a challenge but the industry is working round the clock to increase enforcement through the regulatory and enforcement bodies.

 

“Consumers’ apathy due to bad experience they have had in the past, is affecting policy renewals but I can assure Nigerians that there are various complaint avenues for people to lodge complaints. If your legitimate claims are not settled, you can approach NIA and NAICOM, and if your complaints are genuine, they will be definitely resolved,” he assured.

 

Earlier, the managing editor, BusinessToday Communication Limited, Mrs. Nkechi Naeche-Esezobor, while delivering her Welcome Address, noted that, the theme of this year’s Conference, ‘The World Of AI: How Insurance And Pension Sectors Can Explore Opportunities For Market Penetration,’ provided opportunities to deliberate and fashioned out strategies that both the insurance and pension sectors can deploy to enhance  consumer value and  service delivery, as well as  further deepen market penetration. Stating that Nigeria’s insurance industry hit N1 trillion premium income target last year, which is a milestone, she added that this feat is expected to rise faster with the right technology, including AI.

 

AI is transforming the insurance industry, especially, in underwriting, customer support, advertising, claims, and fraud prevention, she said.

 

 


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

START EARNING US DOLLARS as a Nigerian ($35,000) monthly. Companies are sacking their workers due to AI (artificial intelligence), business owners are in panic mode. Only the smart will make it. Click here


Tags: Artificial intelligence
SendShareTweetShare
Previous Post

Nigeria Partners 3 Countries To Strengthen African Financial Centres

Next Post

2 Firms Collaborate To Mentor Aspiring Fashion Entrepreneurs

Zaka Khaliq

Zaka Khaliq

You May Like

Bitget Hosts Blockchain Education Day To Foster Web3 Awareness Growth
Business

Bitget Hosts Blockchain Education Day To Foster Web3 Awareness Growth

2025/06/07
2025 Budget: Outcry As Agency Appropriates N6bn On Frivolities
Business

2025 Budget: Outcry As Agency Appropriates N6bn On Frivolities

2025/06/07
FCCPC To Prosecute PoS Operators Over Service Price Fixing
Business

FCCPC Sets Up Committee For Anti-counterfeit Portal

2025/06/07
Asharami Energy Commits To Local Capacity Devt, Sustainable Growth
Business

Asharami Energy Commits To Local Capacity Devt, Sustainable Growth

2025/06/07
BPP, CIPS Strengthen Partnership On Procurement Practice, Sign MoU
Business

BPP, CIPS Strengthen Partnership On Procurement Practice, Sign MoU

2025/06/07
Centre Partners Niger Delta Varsity On Marine Training
Business

Centre Partners Niger Delta Varsity On Marine Training

2025/06/07
Leadership Conference advertisement

LATEST

LP Mourns Late CJN Uwais, Seeks Implementation Of Report On Electoral Reforms

Tennis: Gauff Beats Sabalenka To Win French Open Title

‘I Never Begged Wike For Money’, TV Anchor Reuben Abati Refutes FCT Miniter’s Aide’s Claims

Singer Darey Art Alade, Wife Escape Unhurt After Their Car Catches Fire On 3rd Mainland Bridge

Civil War Was For Unity, Not Hatred — Gowon

Nnamdi Kanu Is Prisoner Of Conscience — IPOB

Justice Uwais: Nigeria Lost Statesman Of Unimpeachable Character, Say Northern Senators

Eid-el-Kabir: CAN Preaches Unity, Support For Flood Victims

Taraba Rep Tafida Bags ‘Best Legislator 2025’ Award

Why We Established ‘Discoverer Nigeria’ News Platform — Editor

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.