The increasing adoption of technology applications such as artificial intelligence (AI) and the recent wave of skilled workers migrating overseas in search of better conditions (the so-called “japa”) have hit the insurance industry hard.
Industry experts say that while the introduction of these applications has enhanced services, the human element and experience that builds the trust required to forge lasting relationships with customers is fast being lost.
According to Fola Daniel, Chief Executive Officer of FBS Reinsurance Limited, the importance of training and retraining insurance professionals cannot be overemphasised as the human presence remains essential to building customer trust.
Daniel made the remarks on the sidelines of a training programme jointly organised by FBS Reinsurance and South Africa's Munich Re, held recently in Lagos, aimed at bridging the technical knowledge gap in the insurance industry.
“Today, many underwriters rely on software applications to perform their underwriting tasks. Experience-based underwriting is rapidly declining,” he said.
“Of course, in the age of artificial intelligence, there is virtually no subject that you can't enquire about and get an answer to, but experience is still necessary as there are aspects of insurance that artificial intelligence just can't handle,” he said.
“For example, marketing. People need to see your face. You need to talk about your company profile. You can do that in print, but it makes a better impression when people meet you in person, talk to you, and ask questions they can't get answers to from a publication on your website.”
According to Daniel, the objective of the training is to identify knowledge gaps in Nigeria and other African markets, bridge the technical knowledge gap and impact the much-needed knowledge.
“We expect participants will come away more knowledgeable. However, this training does not cover all the technical aspects of insurance. Our focus is on fire insurance, consequential losses and reinsurance accounting.”
Leadway Assurance Company Limited recently launched “Leadway VehiScanner”, an artificial intelligence enabled tool available on mobile devices that will transform the vehicle appraisal process, allowing users to scan vehicles, identify damages, facilitate pre- and post-loss inspections, get instant inspection reports and expedite the claim request process for policyholders, all from the convenience of their mobile devices.
“Leadway VehiScannerAI eliminates the tedious and time-consuming traditional vehicle inspection process that requires policyholders to visit a physical inspection centre. This AI-powered tool allows policyholders to conveniently carry out a comprehensive inspection remotely via their mobile phone and get instant, robust results on areas that need inspection and attention,” said Tunde Hassan-Odukale, Chief Executive Officer, Leadway Assurance.
As AI-powered tools and algorithms become more prevalent in the insurance industry, many routine tasks and decisions will likely be automated, potentially compromising the expertise and experience of human executives. This could change the way insurance companies operate, with AI systems assuming more responsibility for data analysis, risk assessment, and issuing insurance policies.
However, it is important to keep in mind that AI will not completely replace human judgement – it can be designed to augment and support the decision-making process of insurance executives, providing more accurate, data-driven insights to aid in decision-making.
To mitigate the potential negative impact of AI on executive experience, insurers may need to invest in training programs to help their executives acquire new skills and adapt to the changing environment. This could include teaching them how to effectively operate AI systems and how to interpret and make decisions based on the complex data and analytics that these systems provide.
Ultimately, it will be a matter of striking a balance between the benefits of AI technology and the importance of human expertise and experience in the insurance industry.
