The National Insurance Commission (NAICOM) has vowed to incorporate artificial intelligence (AI) into the Nigerian insurance industry.This approach is consistent with the federal government’s National Artificial Intelligence Strategy, which seeks to establish Nigeria as Africa’s AI hub.
Mr. Olusegun Ayo Omosehin, Commissioner for Insurance (CFI), disclosed the information during the 2024 Nigeria Actuarial Society (NAS) annual industry conference in Abuja.
He emphasised the importance of the insurance industry, and by extension, actuaries, in adopting AI for the sector’s growth.
NAICOM’s commitment, he stated, is to ensure that “sectoral regulatory policies are consistent with the outlined goals of the Federal Government while enhancing the stability of the Nigerian Insurance Industry.”
Mr. Omosehin acknowledged concerns about AI replacing jobs, but emphasised the significance of ongoing innovation for actuaries. He emphasised the importance of actuaries developing skill sets that use AI and machine learning tools to remain relevant.
Mr. Omosehin acknowledged concerns about AI replacing jobs, but emphasised the significance of ongoing innovation for actuaries. He emphasised the importance of actuaries developing skill sets that use AI and machine learning tools to remain relevant.
He stated that the NAS plays an important role in providing its members with the skills they need to manage this shifting world.The Insurance Commissioner believes that artificial intelligence will become mainstream in data analysis. This would allow actuaries to extract deeper insights from large datasets, resulting in more accurate risk pricing models and the development of novel insurance products tailored to the Nigerian population.
According to Omosehin, AI adoption opens up huge prospects for the fast increasing Insurtech sector and financial inclusion, such as providing microinsurance solutions for underprivileged communities and expediting underwriting processes via Insurtech AI.
Bottom Line
While there are legitimate concerns about AI potentially displacing jobs, the focus on continuous innovation and upskilling is crucial.
Other professionals in the insurance sector need to develop competencies in AI and machine learning to remain relevant and competitive.
This proactive approach can mitigate the risks of job displacement and ensure that the workforce is equipped to leverage new technologies effectively.
