'AI will increase profitability in insurance sector' - NAICOM

The Commissioner for Insurance/CEO, National Insurance Commission (NAICOM), Mr Sunday Thomas has stated that artificial intelligence (AI) is very important to the future of insurance business in Nigeria.

Sunday made this known at the 8th BusinessToday annual conference & exhibition with the theme, “The World of AI: How Insurance and Pension Sectors Can Explore Opportunities for Market Penetration”, in Lagos.

He was represented by the Deputy Director, Lagos Office of NAICOM, Ajibola Olabisi Bankole.

He encouraged insurance operators to increase adoption in this area as it gives better productivity and enhanced profitability, while ensuring fast service delivery to insurance consumers.

The conference chairman who is also the Chairman of NEM Insurance Plc, Mr Tope Smart, added that the level of insurance penetration in Nigeria when benchmarked with the global penetration, saying that a lot of factors were responsible for the increase in penetration level.

He said: “It is quite saddening that out of a population of 200 million, only about three 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 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 Nigerian Insurers Association (NIA) and NAICOM; if your complaints are genuine, they will be definitely resolved."

BEB