Operators in Nigeria’s insurance sector have been asked to re-evaluate their business strategies in line with emerging technologies so as to sustain growth through effective service delivery.
Nigeria’s Commissioner for insurance and Chief Executive of the National Insurance Commission (NAICOM), Sunday Thomas, observed that the insurance industry is far behind in digital transformation and challenged the sector to urgently reassess its business model, re-evaluate her strategy and make the digital agenda a high priority.
Thomas, while addressing Insurance Professionals’ Forum, organised by the Chartered Insurance Institute of Nigeria (CIIN) in Abeokuta, Ogun State, advised insurance companies that are yet to align with its portal requirements to immediately do so.
“If this is not done it will be difficult to deliver on customers’ expectations and new entrants, Insurtech companies and leading digital competitors will take advantage of this weakness. It is time for insurers to evolve and do the needful.”
“Without unpacking all the contents of the big box called digital age, there are contents yet to be explored such as Automation, Block Chain Technologies, Artificial Intelligence Internet of Things, Big Data” he said.
Thomas said the Commission is desirous of a fully digitised industry and expressed optimism for a forum takeaway that that will encourage disruptive growth “through reordering of priorities and cultural change from traditional products offering to customer-centric biases.
According to him, “Aiming for disruptive technology (cloud computing, mobile technology, artificial intelligence, block chain, internet of things) at the minimum, that will blank out traditional business model the focus should be matching current workforce with future needs because the skills that will be critical in the future will likely be quite different.”
Thomas noted that there is no technology age that does not have its own challenges, stressing that there would be challenges faced by the industry in the digital environment such as; meeting the demands of the multi-generation customer bases.
He further observed that the fast-changing digital space, systems and technologies; would lead to the need to reduce cost; data reliability; legacy technology; workforce training; fraud, dealing with on-demand economy and others.