Insurance ecosystem evolving rapidly-NAICOM




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The National Insurance Commission (NAICOM) has declared that the insurance ecosystem is evolving rapidly, noting that underwriters can no longer lean on old familiar ways as the prevailing technological and strategic winds shift around them.

Director, Supervision Directorate, NAICOM, Barineka Thompson, stated this in his paper titled: The Future of Nigerian Insurance Sector in a Shifting Landscape, at the recently held Seminar for Insurance Correspondents in Lagos.

According to him, insurance is shifting from ‘detect and repair’ to ‘predict and prevent’.

Mr. Thompson pointed out that “as our often-cloudy present opens up toward a brighter future, insurers should embrace technology across the customer journey if they hope to secure the trust and loyalty of tomorrow’s policyholders.”

He explained that like many industries where digitisation has taken hold, tech shouldn’t be adopted for techology’s sake, stressing that simply upgrading to the latest technological trend is not enough to sustain a competitive edge.

Mr. Thompson said factors such as distribution; claims; operation proposition; risk and capital can drive insurers’ potential for future success as they consider their digital strategies.

He exposed what the future looks like with an analogy tagged; welcome to the future of insurance, as seen through the eyes of Mr. Scott, a customer in the year 2030.

His digital personal assistant orders him a vehicle with self-driving capabilities for a meeting across town.

Upon hopping into the arriving car, Scott decides he wants to drive today and moves the car into “active” mode. Scott’s personal assistant maps out a potential route and shares it with his mobility insurer, which immediately responds with an alternate route that has a much lower likelihood of accidents and auto damage as well as the calculated adjustment to his monthly premium.

Scott’s assistant notifies him that his mobility insurance premium will increase by four to eight per cent based on the
route he selects and the volume and distribution of other cars on the road. It also alerts him that his
life insurance policy, which is now priced on a “pay-as-you-live” basis, will increase by two per cent for
this quarter.

The additional amounts are automatically debited from his bank account.

When Scott pulls into his destination’s parking lot, his car bumps into one of several parking signs.

As soon as the car stops moving, its internal diagnostics determine the extent of the damage. His personal assistant instructs him to take three pictures of the front right bumper area and two of the surroundings.

By the time Scott gets back to the driver’s seat, the screen on the dash informs him of the damage, confirms the claim has been approved, and reports that a mobile response drone has
been dispatched to the lot for inspection. If the vehicle is drivable, it may be directed to the nearest in-network garage for repair after a replacement vehicle arrives.

Thompson noted that while the experience of Mr. Scott may seem beyond the horizon, such integrated user stories will emerge across all lines of insurance with increasing frequency over the next decade.

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