The Future of Insurance – 3 Major Areas of Opportunity

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The insurance industry in Nigeria has been historically slow to embrace technology even the biggest Insurance Companies are lagging behind their international counterparts. This attitude is understandable – the industry relies heavily on historical data, which is generally not available in computer software.

Technology is putting pressure on the insurance industry through clients demands. In 2018 and beyond, sophisticated insurance applications will determine the future of Insurance in Nigeria as even one failure to live up to their commitments could be devastating to an insured.

See Also: Everyday Life and Insurance

Technology is putting pressure on the insurance industry from three sides:

The Customers (Insured)

Over the past few years, the insured have grown accustomed to an easy, chat-like experience whilst interacting with large service providers. Insurance products, presently in the market are far too generalized and one-size-fits-all. This appeals to a customer base that is expecting easily individualized products.

Providing technologically driven and usage-based insurance products can make a provider significantly more appealing in this respect.

Security

The cybersecurity market is growing everywhere, along with the pressure to contain and manage risk exposure and liabilities better, although traditional insurers are hesitant to make convincing offers to threatened customers.


Internal Processes

Lastly, technology provides new avenues to cut costs in internal processes by making available huge sources of data and enabling its more efficient analysis. This makes the staff work smarter, be more efficient while spending little time to perform effectively.

Insights

Technology in the insurance industry will become more significant in 2018 and beyond. These technologies will increase staff efficiency in managing large amounts of data.
The introduction of applications and software would reduce turn around time and make the interface between insured, insurer and the insurance broker smoother in the long and short term.


Insurance Brokers of Nigeria Limited,
4, Ilabere Avenue, off McPherson Avenue, Ikoyi
Tel: 0700 -CALL- IBN (0700-225-5426)
Email: info@ibn.com.ng
www.ibn.com.ng

written by:
Akinboye Akinpelumi
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