NAICOM Embraces Artificial Intelligence to Revolutionize Nigerian Insurance Sector
By Patience Ikpeme
In a move that aligns with the Federal Government’s National Artificial Intelligence Strategy and aims to position Nigeria as Africa’s AI hub, the National Insurance Commission (NAICOM) has pledged to integrate Artificial Intelligence (AI) into the Nigerian insurance sector.
Mr. Olusegun Ayo Omosehin, the Commissioner for Insurance, made this disclosure at the 2024 Nigeria Actuarial Society (NAS) annual industry conference in Abuja on Thursday.
During his address, Mr. Omosehin emphasized the crucial role of the insurance industry and actuaries in embracing AI for the advancement of the sector. He stated that NAICOM’s commitment ensures that sectoral regulatory policies are consistent with the outlined goals of the Federal Government while enhancing the stability of the Nigerian Insurance Industry.
While there have been concerns about AI replacing jobs, Mr. Omosehin stressed the importance of continuous evolution for actuaries. He emphasized the need for actuaries to develop skillsets that leverage AI and machine learning tools to stay relevant in the industry. The NAS, he noted, plays a vital role in equipping its members with the necessary competencies to navigate this changing landscape.
The Commissioner for Insurance believes that AI will become commonplace in data analysis, allowing actuaries to extract deeper insights from vast datasets. This will lead to more accurate risk pricing models and the development of innovative insurance products catering to the Nigerian population.
The adoption of AI, according to Mr. Omosehin, presents significant opportunities for the rapidly growing Insurtech sector and financial inclusion. Insurtech AI can aid in developing microinsurance solutions for underserved populations and streamlining underwriting processes.
To achieve responsible AI integration, NAICOM called for collaboration with stakeholders in three key areas. First, establishing robust regulations that ensure the ethical use of AI in insurance, with a focus on data privacy, fairness, and transparency. Second, fostering partnerships between actuaries and AI developers, where actuaries bring domain expertise and AI developers provide technical know-how. Finally, the actuarial profession must embrace continuous learning, equipping actuaries with skills in data science, machine learning, and AI.
NAICOM also acknowledged the current shortage of qualified actuaries in the Nigerian insurance industry. Mr. Omosehin assured the audience that the commission remains committed to supporting initiatives that facilitate actuarial capacity development. In this context, AI presents exciting prospects for enhancing the actuarial profession in Nigeria.
