PriyaPatel
TLDR: Insurtech companies in Nigeria are offering hope for the struggling insurance industry. These companies are using modern technology to improve insurance services and reach underserved populations. They are exploring new avenues such as ultra-customized policies, social insurance, and the use of data from Internet-enabled devices to drive premium pricing. Although Nigeria’s insurance market has been slow to adopt technology, insurtech firms are bringing innovation to underwriting, claims processing, and consumer engagement. They are using data analytics, IoT devices, and artificial intelligence to improve risk assessment, offer personalized insurance plans, streamline claims procedures, reduce fraud, and increase transparency. Insurtech companies are aiming to increase insurance penetration rates in Nigeria, which currently stands at only 0.5%, by designing and distributing insurance products in ways that are more accessible and affordable for the mass market.
Insurtech companies are leveraging technology to increase access to insurance and reduce costs. They are using automation and digital platforms to sell policies and process claims more efficiently. For example, some companies are using chatbots to sell policies, with 85% of sales concluded without human intervention. Companies are also using technology to process and facilitate claims payments quickly, often within hours, improving customer trust in the industry.
Despite the potential of insurtech, there are challenges that need to be addressed. One of the main challenges is the low insurance penetration rate in Nigeria, which is largely due to a lack of access and affordability. Many Nigerians want to buy insurance, but they struggle to find affordable products that meet their needs. Another challenge is the negative perception of the insurance industry, which has been affected by poor claims management and a lack of professionalism from some underwriting firms. Regulators and industry leaders are working to address these challenges and promote the adoption of insurtech in the country.
