NAICOM: Leveraging Technology Will Ensure Insurance Penetration

Ebere Nwoji

The National Insurance Commission (NAICOM) has called on insurance sector operators to leverage technological advancement in reaching all Nigerians with insurance products and services to deepen insurance penetration

The Commission at the recent media retreat organised for insurance and Pension journalists in Uyo, Akwa Ibo State said the only way to go is through the use of technology.

NAICOM said in the past few years, the insurance sector operators had seen the emergence of core technology trends that were affecting nearly every industry. 

It noted that there had been advent of a multitude of technological advancements and shifts that have been reshaping the way we access products and services and or how they were delivered to customers.

It defined insurance penetration as a measure of the contribution of insurance to the

Gross Domestic Product (GDP).

It added that insurance penetration was also an indicator of insurance sector development within a country and how much it contributes to the national economy.

NAICOM’s Assistant Director Information Technology Department, Ibrahim Ngaski speaking on the topic Leveraging Technology to Promote Insurance Penetration at the retreat said: “Insurance companies can maintain a competitive edge by automating, improving and optimising their business processes without compromising efficiency, quality, and response time.”

He said the use of technology would enhance employee productivity, speed-up processes, raise customer service levels, improve customer experiences, reduce operational expenses and increase operational efficiency.

According to him, there is an urgent need for the insurance industry to adopt technologies to provide digital solutions. 

He said when this is done; it would improve access to insurance by providing digital channels of distribution, enhancing easier access to insurance products and coverage, speedy issuance of coverage and claims payment and provides innovative products to their customers.

He said the adoption of the following technologies would provide digital solutions for increased insurance penetration:  cloud computing which would enable delivery of various services over the internet, data management, and its flexibility, mobile technology which provides the industry with method used in communicating and marketing varieties of goods and services across different customers timely, thereby bringing services nearer to them to increase customer experiences. Internet of thing (IoT) which according to Ngaski  is the internetworking of physical devices, vehicles, buildings and other items (also referred to as “connected devices” and “smart devices”), embedded with electronics, software, sensors, actuators, and network connectivity that enable the objects to collect and exchange data. 

“It is a network of smart devices connected to the internet. Insurers are increasingly leveraging the Internet of Things for various purposes, including identification of customers’ needs and risks. This is achieved by wearables to monitor our health and smart devices in cars and consumer products in houses. They are used to collect, share, interact with and analyse data, ”Ngaski said.