NAICOM pledges AI integration to revolutionise Nigeria’s Insurance Sector

By Esther Agbo

The National Insurance Commission (NAICOM) has announced its plan to integrate Artificial Intelligence (AI) into Nigeria’s insurance sector.

This initiative supports the Federal Government’s National Artificial Intelligence Strategy, which aims to establish Nigeria as Africa’s leading AI hub.

At the 2024 Nigeria Actuarial Society (NAS) annual industry conference in Abuja, Commissioner for Insurance, Olusegun Ayo Omosehin, emphasised the insurance industry’s critical role in adopting AI.

He stated that NAICOM is committed to ensuring that regulatory policies align with the Federal Government’s AI goals, thereby enhancing the stability of the Nigerian insurance industry.

Mr. Omosehin addressed concerns about AI potentially replacing jobs, emphasising the need for actuaries to continually evolve their skill sets to include AI and machine learning tools. He highlighted the NAS’s role in preparing its members for these technological advancements.

He believes that AI will become essential in data analysis, allowing actuaries to gain deeper insights from large datasets. This will lead to more accurate risk pricing models and innovative insurance products tailored to the Nigerian market.

Furthermore, adoption of AI offers substantial opportunities for the rapidly expanding Insurtech sector and financial inclusion. This includes creating microinsurance solutions for underserved communities and optimising underwriting processes using Insurtech AI.