‘Let’s embrace AI to drive innovation in insurance industry’
Story: Isaac AIDOO, Accra
NIYI Onifade, Chief Executive Officer of Heirs Life Assurance and Sector Head of Heirs Insurance Group, has urged the insurance industry in West Africa to embrace artificial intelligence (AI) to drive innovation, improve customer experiences, and increase insurance penetration.
Speaking at the WAICA Education Conference in Accra, where he presented a paper on “Artificial Intelligence and the Future of Insurance in the Sub-region,” Onifade emphasized AI’s transformative potential for the region’s insurance landscape.
“The world is changing, and artificial intelligence is now central to technological advancements,” Onifade stated. “Globally, organizations are leveraging AI to transform businesses, cut costs, and improve customer experience. The insurance industry in Africa must follow suit to remain competitive and relevant.”
AI as a Catalyst for Growth
Onifade highlighted the significant strides made by Heirs Insurance Group in adopting AI to streamline operations and enhance customer satisfaction, which has positioned them as Nigeria’s fastest-growing insurance group.
“We leverage technology in various aspects of our business—from product offerings to understanding customer needs and accelerating claims settlements,” he said. “AI has drastically reduced turnaround times for claims processing, with 90% of claims now settled within 24 hours. This efficiency builds trust and ensures customer loyalty.”
Citing global examples such as the Bank of China, Vitality in the UK, and Manulife in Canada, Onifade stressed the importance of AI in revolutionizing the insurance sector. “These companies have shown how technology can reshape insurance. West Africa must adopt similar strategies to advance our industry,” he noted.
Tackling Low Insurance Penetration in West Africa
Onifade lamented the alarmingly low insurance penetration rates in Africa, particularly in West Africa. He noted that Francophone West Africa records a penetration rate of just 1.1%, while Anglophone countries, including Ghana and Nigeria, lag at less than 1%.
“Ghana has a penetration rate of about 0.74%, while Nigeria’s is only 0.4%—figures that are troubling,” he stated. “AI can change this narrative. By leveraging data, we can identify customer needs, create tailored products, and offer seamless service delivery. This will make insurance more accessible and appealing to underserved populations.”
Mobile Technology: A Game-Changer
Onifade identified the growing penetration of mobile phones as a significant opportunity to expand insurance reach. “By 2025, mobile phone penetration in most West African countries is projected to reach 60%. Mobile technology is a powerful tool for delivering insurance products and creating lasting customer experiences,” he said.
He explained how mobile phones could be used to educate potential customers, offer insurance products, and facilitate claims processes. “In Nigeria, for example, telephone penetration exceeds 60%, and we can leverage this to bring insurance closer to the people,” he added.
The African Insurance Market in Context
Onifade underscored the stark disparity in Africa’s contribution to the global insurance market. Of the $7.2 trillion global insurance revenue in 2023, Africa accounted for just $64 billion, with over $40 billion of that coming from South Africa alone.
“When you remove South Africa, the rest of Africa’s contribution is negligible. This underscores the urgent need for innovation and investment in the sector,” he said. “With AI and technology, we can accelerate growth and make African insurance competitive on a global scale.”
A Call to Action
As the conference focused on the role of technology in insurance, Onifade urged industry players to prioritize digital transformation. “Insurance is fundamentally a promise to pay claims. AI helps us deliver on this promise efficiently and consistently, building trust and encouraging more people to embrace insurance,” he concluded. The WAICA Education Conference brought together stakeholders from across the sub-region to discuss how emerging technologies like AI can reshape the future of insurance in West Africa.
