Embrace AI, Innovation To Drive Insurance
– Across West African sub-region, Andoh urges WAICA
Story: Isaac AIDOO, Accra
THE Acting Commissioner of Insurance at Ghana’s National Insurance Commission, Mr. Michael Kofi Andoh, has called on insurance companies in Ghana and across West Africa to embrace artificial intelligence (AI) and innovative technologies to drive penetration and improve service delivery.
Speaking at the West African Insurance Companies Association (WAICA) Education Conference in Accra, Mr. Andoh emphasized that adopting AI could significantly transform the region’s insurance sector, which currently struggles with low penetration rates averaging around 1%.
Themed “Artificial Intelligence and the Future of Insurance in the Sub-Region,” the conference brought together industry leaders, regulators, and policymakers to explore strategies for modernizing the insurance sector.
Common Challenges in the Sub-Region
Mr. Andoh highlighted several challenges common to West African insurance markets:
- Low insurance penetration.
- A prevalence of small insurance companies, which impacts efficiency and profitability.
- The exclusion of the large informal sector from traditional insurance schemes.
- Heavy reliance on agriculture, which creates unique risk profiles.
“These commonalities motivate collaboration within WAICA to develop practical solutions for the sector’s challenges,” he stated. He further urged insurers to interrogate the suitability of AI-driven solutions for the sub-region, including their associated risks, regulatory frameworks, and data protection requirements.
AI’s Potential to Revolutionize Insurance
Mr. Andoh underscored AI’s role in transforming insurance operations, from predictive analytics to personalized product offerings. However, he cautioned that AI adoption requires substantial investment and must be guided by appropriate frameworks to ensure consumer protection and cost optimization.
“This conference should enable participants to ask critical questions such as: what AI applications are appropriate for our markets, how do we manage associated risks, and how can we ensure AI benefits outweigh its costs?” he added.
He also called for collective action within WAICA to establish a common fund to support research, capacity building, and investment in technology, particularly in IFRS 17 compliance and climate risk mitigation.
Finance Minister’s Perspective
Representing Ghana’s Finance Minister, Mr. Sampson Akligoh, Director of the Financial Sector Division, echoed the urgency of adopting AI and emerging technologies. He emphasized that insurance plays a pivotal role in economic growth by mitigating risks, facilitating investments, and providing financial security for businesses and individuals.
“AI and advanced technologies are not just trends—they are essential for fostering productivity, mobilizing private capital, and driving long-term investments, including in infrastructure and renewable energy projects,” Mr. Akligoh stated.
He lauded Ghana’s progress, citing the passage of the Insurance Act, 2021, which introduced reforms such as risk-based supervision, a regulatory sandbox, and enhanced technology adoption frameworks. These measures, he said, position Ghana’s insurance sector for growth and competitiveness.
Call for Strategic Action
Both Mr. Andoh and Mr. Akligoh stressed the need for concrete actions to implement conference outcomes. Mr. Andoh urged WAICA and its members to establish implementation frameworks, while Mr. Akligoh highlighted the importance of developing new indices to better capture the sector’s contribution to GDP, reflecting health insurance, pensions, and social security.
“AI and other emerging technologies have come to stay,” Mr. Akligoh said. “The key question is: how prepared is the West African insurance sector to embrace this transformation and position itself for future opportunities?”
As the conference progresses, participants are expected to outline actionable strategies to leverage technology for deepening insurance penetration and enhancing service delivery in the region.
The Acting Commissioner of Insurance at Ghana’s National Insurance Commission (NIC), Mr. Michael Kofi Andoh, has urged insurance companies in the West African sub-region to critically interrogate the role of artificial intelligence (AI) and innovative technologies in enhancing insurance penetration.
Speaking at the West African Insurance Companies Association (WAICA) Education Conference in Accra, themed “Artificial Intelligence and the Future of Insurance in the Sub-Region,” Mr. Andoh emphasized the need for strategic action to address the region’s persistently low insurance penetration rate of around 1%.
Mr. Andoh observed that the West African insurance market shares notable characteristics, including a predominance of small insurance companies, a large informal sector often excluded from conventional insurance products, and a heavy dependence on agriculture. These, he said, present both challenges and opportunities for collaboration and innovation among member countries of WAICA.
“Technology, particularly artificial intelligence, offers vast potential to revolutionize risk assessment, enhance customer experiences, and improve efficiency. However, AI adoption must be strategic and informed by a thorough understanding of its risks and benefits,” Mr. Andoh stated.
He outlined key questions for insurers to consider, including:
- Which AI-based applications are currently suitable for the region?
- What risks does AI adoption pose to the sector?
- How can AI policies and procedures ensure consumer data protection?
He stressed the need for collective efforts to establish a framework for AI integration, capacity building, and resource mobilization, suggesting that WAICA member companies could pool resources to sponsor research into such areas.
“Incorporating AI without a clear strategy can be risky and costly. We need to ensure that these investments bring measurable benefits to our companies and the economies we serve,” Mr. Andoh said.
Addressing Regional Challenges
Mr. Andoh highlighted global issues impacting the insurance industry, such as the implementation of IFRS 17, climate change, and technological disruptions. He noted that IFRS 17 compliance requires significant resources, which smaller insurance firms across the sub-region may struggle to muster.
On climate change, he called for practical strategies to mitigate its impact, given the region’s vulnerability to disasters despite its minimal carbon emissions. “The physical and transitional risks of climate change will continue to impact operations and sustainability in the insurance sector. We must find ways to turn these challenges into opportunities,” he said.
Finance Ministry’s Call for Innovation
Representing the Finance Minister, Mr. Sampson Akligoh, Director of the Financial Sector Division, underscored the transformative role of AI in the insurance sector. He called for readiness to adapt to technological advancements to enhance productivity and foster economic growth.
“Insurance plays a critical role in driving economic growth by providing protection against risks and enabling businesses to explore new opportunities. As we adopt AI and other technologies, we must ensure they drive increased penetration, especially in the informal sector,” Mr. Akligoh stated.
He also noted that insurance is pivotal in facilitating long-term investments in infrastructure and renewable energy. He urged the insurance industry to explore opportunities to collaborate with local financial institutions and expand its role in mobilizing private capital.
Mr. Akligoh referenced Ghana’s new Insurance Act (2021) and its associated regulations, highlighting initiatives such as a regulatory Sandbox ecosystem and a risk-based supervision framework designed to enhance innovation and market stability.
“These reforms align with our vision to strengthen the sector and make it more attractive to investors while ensuring its contribution to national economic development,” he added.
A Roadmap for the Future
Both speakers emphasized that AI adoption in the insurance sector must align with robust regulatory frameworks to safeguard consumer interests. They urged WAICA to develop actionable plans and frameworks to ensure conference discussions translate into tangible outcomes.
As Mr. Andoh concluded, “It is easier to talk than to act, but well-done is always better than well-said. Let us leave this conference not just with ideas but with a clear roadmap for implementation.” Participants at the conference are expected to deliberate on the key themes raised, with resource persons addressing AI applications, compliance with IFRS 17, and strategies to combat climate change-related risks.
