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CognitiveTechnology Reshaping Africa’s Insurance Sector

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Nwani is IBM’s Global Markets ClientExecutive for West Africa
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By Uzo Nwani

 

Underinsurance remains a feature of many African economies. With the African Development Bank(AfDB) revising its projected GDP growth rate for the continent to 3.7% from 4.2% by 2018, the region’s relatively low uptake of insurance is one key indicator of its underdevelopment. For folks in the technology space, the insurance sector’s micro and macro issues are often opportunities for technology adoption and utilization.

 

Technology adoption is however not the key challenge confronting Africa’s insurance sector. A more fundamental problem plaguing the growth of Africa’s multi-trillion-dollar insurance industry is the issue of trust.

 

Nigerian lawyer and human rights activist Femi Falana recently explained at an insurance colloquium that while most insurance companies in Nigeria are anxious to collect premiums, they are reluctant to pay claims. And when they agree to pay, the payment is deliberately delayed. “One account of such delays is when motorists and drivers fight on the roads to determine who would fix their damaged vehicles,” Falana explained.

 

In a recent interview with the UK’s Financial Times newspaper, Paul Norman of KPMG East Africa opines that without trust, the industry is as good as nonexistent:“There’s a trust deficit gap — people don’t buy insurance because they don’t trust the providers,” he says. “They don’t think the promise [that a claim will be paid] is going to be delivered. Claims are not paid quickly, fairly or correctly. It’s a huge pain point across the continent.”

 

While the adoption of advanced technologies like big data analytics, cloud and cognitive computing will certainly boost the operational performance and efficiency levels of insurance firms (and businesses generally), insurance industry practitioners and institutions must work harder to fix the sector’s trust issues, working in concert with technology firms who will support their market development plans with appropriate solutions and systems.

APA Insurance, a Kenyan insurer catering to both individuals and corporates, recently turned to IBM to optimize its claims processes. The insurance underwriter can now gain greater visibility into policies, premiums and loss ratios through IBM Analytics Solutions, ultimately improving its product offerings, service delivery and customers experience.

While IBM continues to evaluate APA’s adoption and integration of its business intelligence (BI) solutions, the bigger picture is that there is a pent-up demand for insurers and improved risk management services across sub-Sahara Africa. Technology could help unlock the sector, further contributing to the continent’s gross domestic product (GDP). The International Monetary Fund (IMF) has recently predicted that emerging markets and developing economies will be at the forefront of growth for 2017-18 at more than double the rate of advanced economies.

African insurers will no doubt increasingly use technology to rejig their business models, including as a tool to cope with changes in the markets and changes in regulation. Technology will also eradicate the industry’s traditional boundaries, allowing new entrants to compete with the established behemoths in the industry. And as markets mature, insurance practitioners will also have to come up with strategies to better manage risk and technologically savvy customers. To succeed, insurers will have to work faster, more efficiently and, above all, smarter.

 

The report of a study by the IBM Institute for Business Value (IBV), “Insurance 2025: Reducing Risk in an Uncertain Future” reveals that two technological trends will have a high impact on the future of business across industries: the rise of cognitive computing, and the increasing potential for decentralization of systems and decision making.

 

If systems are decentralized, the question will be where the center of control will sit, and how fragmented the networks will be. For example, limitations imposed by privacy concerns, regulation, or liability could hamper the use of devices encourage the device autonomy and the centralization of control.

 

Cognitive computing refers to next-generation information systems designed to accelerate, enhance and take advantage of human expertise. These systems can learn large amounts of data, reason with purpose, and interact with humans naturally. Their ability to handle unstructured data and range across wide subject domains gives them opportunity to remake business processes. We believe these technologies will have reached maturity by 2025.

 

An IBM IBVinsurance survey in 2016 found that 79% of insurance company leaders believe technology will have a major impact on their organizations, and 71% said they have begun to use cognitive technologies. When combined with artificial intelligence (AI), cognitive systems can enable insurers to assess the risk of loaning to an individual to a high degree.

 

We believe that insurance companies should consider these four moves to succeed in the next decade:

 

1) Increase flexibility: Take out expenses and build in flexibility by moving core systems to a hybrid cloud that are available as-a-service, which enables experimentation and entry into new markets entry at low costs, on secure platforms. As products move to “as-a-service” models, turn legacy systems into components to help sustain cost competitiveness.

 

2) Develop partner ecosystems: Organizations in the insurance industry will need to collaborate to have the best data about consumers and the risks of loaning money to them. The goal is to cultivate partnerships and membership in ecosystems within the insurance industry. When using “as-a-service” products, an insurance company will need to cooperate with service partners to offer the complete package.

 

3) Improve predictive capabilities: Insurance companies will need to improve their speed of change by bringing together technology, business capabilities and product investment. They should use analytics, pattern recognition and data to chart progress, as well as understand customer behavior and risk parameters.

 

4) Embrace innovation: Leading innovators build an organization with a corporate culture and design processes that encourage innovation. Corporate structures can be made more flexible by streamlining internal innovation processes, with centralized funding and investment models.

 

Embracing innovation will build skill with component technologies of whichever future scenario wins, providing the capabilities necessary to prosper in changing conditions. And building agile development and business service composition skills will keep your organization nimble enough to capitalize on market changes.

 

As African economies expand and evolve, C-suite executives in Africa’s insurance sector will need to look towards the future, embracing cloud and cognitive systems to maintain their organization’s competitive advantage. By using this holistic approach, they can continue to transform their business even as their industry is restructuring all around them.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Leo Stan Ekeh: A “Rare Avis”, an Unconquerable Entrepreneur

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By Tim Akano

Leo Stan Ekeh (LSE) is an extraordinary human being. He is extremely hardworking, hugely brave, and massively intelligent. He is a shrewd businessman but with a cathedral-size heart of butterfly

Leo Stan Ekeh: A "Rare Avis", an Unconquerable Entrepreneur

Leo Stan Ekeh

I’m a product of LSE’s generosity. But not only me, I am close enough to know. We are uncountable.

I was always with him after office hours in his office twenty years ago when he was constructing a church in his place of birth. He was so committed to details and beauty that when the church was roofed and he went for inspection and discovered some misalignment, he instructed the contractor to remove the roof and redo it, without minding the extra cost coming from his pocket.

There was this physically challenged fellow that LSE bought a car for, including a driver to make life easier for her.

During one of his birthday celebrations, he told me, Tim, I am not inviting my friends for any birthday party this year, all the money I would have used in buying expensive wine, I am donating everything to charity

LSE & I

He actually looked for me when I started New Horizons. He read my interview in the Vanguard news paper and asked his staff to look for me.

Prayer:
May each of us receive a telephone call before the end of 2025 that will change our life’s trajectory for good for ever in Jesus name, Amen.

I did.!

Our conversation on that fateful Friday went like this:

LSE: Tim, I read your interview in the newspaper. I would like us to meet.

Tim: You are our LEADER in the Technology ecosystem, Sir.
I can come to your house tomorrow Saturday morning for a breakfast.

LSE: Tim, that’s good, I will be expecting you by 8am tomorrow in my house.

By 8am the following day, I was in his massive, intimidating house.
As I entered the premises I said a simple prayer: The God Almighty who is blessing LSE, please Daddy God be kind to me also in my entrepreneurship journey Amen.

That day the breakfast meeting went well. He wanted to see the man behind the ambitious vision of transforming the ICT education in Nigeria.

He saw tomorrow!

1 LSE First Intervention: Two years after I started my company, New Horizons, I ran out of cash, even to pay salary was a prayer item every 30th of the month. That was May, 2007 it remained just 72 hours for Heaven to fall on my head, metaphorically speaking, that is!

I needed N10M to stop HEAVEN FROM CRASHING ON MY HEAD!
Banks in Nigeria are irrelevant to Start-ups, except and until you START WALKING, Banks will not come to your assistance in Nigeria.
It is O.Y.O (On Your Own) for every Start-up. If you don’t have God 100% on your side, don’t dabble into entrepreneurship in Nigeria!

This is why over 80% of Start-ups failed in Nigeria. In America, it is about 50%.

LSE was in Abuja on this particular Thursday. I called him and requested to see him. He told me to come.

Our conversation went like this:

LSE: Tim, I know you are keeping well.

Tim: My chairman, I am strong in faith, but in reality, heaven is hot on my side o! I need help, Chairman.

LSE: What is the matter, Tim?
Tim: I need N10M soft loan to keep afloat. It is urgent, critical and time- bound.

LSE ok, Tim, see me on Monday (that meeting took place on a Thursday).

Tim: My chairman, I am not exaggerating the criticality of my situation. by Monday it would be too late because Heaven would crash on my head in another 72 hours without the N10M! And it would be all over.

LSE adjusted himself, he breathed in , he looked me straight in the eyes. I wouldn’t know what LSE saw in my eyes that day.

But he stood up, went to the inner room and he came out with his cheque book. He gave me an Access Bank cheque for N10M, which I later refunded 3 months later without interest.

I survived, heaven didn’t fall that day, glory be to God and thanks to LSE.

LSE intervention 2:

This time we had grown, having survived the ABIKU YEARS (The first 5 years of Start-up are the ABIKU YEARS, years of premature, sudden death. If you survive the first 5 years, your chances of living to celebrate your 20 years in business are bright). We did, all gratitude to God.

I got a business that required huge capital to execute- very big money, which was beyond my capacity.

I went to my destiny- helper again. He is never tired of seeing me. He picks my calls on the first ring. But I don’t abuse the access too. No frivolous conversations. No irrelevant calls. Every call is about matter and mission critical

This particular day LSE was looking extremely tired, having over flogged his body.

He told me he had been sleeping in the office for about 3 days, busy putting his papers together to enable him close a massive business deal, which he eventually got, after fighting like a lion whose cub was taken by a lone leopard!

LSE overwhelmed every opposition. He fought like Mohammed Alli, the world’s greatest boxer of all time. LSE won.
And that changed everything for him, too, forever. Fortune favours the Brave

Our conversation that day went like this:

LSE: Tim, congrats you are doing well, I can see. Indeed I instructed all my staff to make sure they read any article you published (“I felt flattered”).

Tim: Chairman, I need your help, KONGA is not ready to give me the products I needed on credit and I don’t have cash to pay and the client will not pay me until after 9 months.

Tough one, indeed.

LSE: Tim, I will be honest with you, there is no way KONGA would give you products worth N500M (10 years ago money!) on credit.

Indeed, we held a meeting on Monday over your matter, the resolution of the Zinox Group is that you must look for cash before you can get the products. Let me tell you, my staff made me to sign-off on our resolution that as the Chairman of Zinox , I, LSE will not go behind to do the opposite of what we all agreed to, and I signed. Tim, I am sorry, my hands are tied!

As of that time, some of the young people LSE helped disappointed him badly. So bad, some souls are ungrateful.

Tim: Chairman, I know some of the people you helped even went to the extent of wrongfully blackmailing you in the media. I know that for a fact.

But Chairman, I am different. I am Tim Akano, I won’t disappoint you.
I will remain eternally grateful if you can still think out- of -the box and help me out.

I added: Chairman, you recall you were the one who looked for me that you would give me a helping hand in life.
I think my last statement touched him.
LSE Tim, I will give you my personal cheque. Here is the cheque for you, take it to KONGA and pay for your goods to meet your deadline.

Tim On getting to KONGA, from my steps and tone, the staff knew something positive had happened.
I confidently presented my cheque to Loretta & Co, the lady managing our account in KONGA then
They were shell shocked that God pulled it through for me another time, using Leo Stan Ekeh.

There were many more positive interventions, which I will reserve for my memoir.

Lessons: The reason behind the rise and rise of Leo Stan Ekeh (LSE) has to do partly because of his massive generosity, most of them are done silently.
Yes, LSE is a shrewd businessman, but he has a heart of a butterfly.

2 LSE is unconquerable and himself and his lineage will remain so because of several lives he has impacted positively

3 We are all products of people’s generosity. No one is a self-made man. In my own corner, through the TIM AKANO FOUNDATION, I am giving back in thousands folds all the kindness I am enjoying from people like LSE & others. I’m not withholding any kindness from people who need it when it’s within my capacity. God saw my heart, too, that when he must have helped me to stand, I will light thousands of candles.

It was William Shakespeare who admonished his followers to tell him all the good things they wanted to tell him while he was still alive because tributes written in beautiful prose means nothing to a dead person.

I congratulate LSE children, they have a great father in and his legendary generosity will always speak for them up to the 4th generation., as the Holy Bible said. LSE children should be proud of their father, he is a Lion, an Eagle and a butterfly, (LEB) all together at the same time.

@LSE: Sir, if you manage to read this short public appreciation, which I was inspired to write in a wedding event (the couple is taking over one hour to come out, instead of joining people who are anxious, I decided to use my idle time to pay you this tribute today), I want you to feel proud of yourself; what you have achieved will take an average person 10 lifetimes to achieve.

Your positive numerous interventions in my entrepreneurship journey have germinated and I am also touching lives- like you- in thousands across Africa, not only in Nigeria, especially with regards to Youth Empowerment.

I am eternally grateful, my chairman, my destiny-helper.

My prayer for you my Chairman, LSE: The Lion, the Eagle, the Butterfly (LEB) is for God to keep you continuously in sound, divine health, peace and happiness- that you will still remain strong at 120 years of age like the Biblical Moses who miraculously escaped physical depreciation in his eyes, strength and mental magnitude.🙏

Gratitude!
Gratitude!!
Gratitude!!!

[email protected]


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NITDA Wins Triple SERVICOM Honours for Citizen-Centred Service Delivery

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National Information Technology Development Agency (NITDA) has clinched three prestigious Service Compact with All Nigerians (SERVICOM) awards at the annual Ministry, Departments and Agencies (MDAs) Awards ceremony, earning acclaim for its outstanding citizen-centred service delivery.

NITDA Wins Triple SERVICOM Honours for Citizen-Centred Service Delivery

NITDA

The honours spotlight NITDA’s leadership in digital transformation and efficient public service, as evaluated by SERVICOM on key benchmarks of timeliness, transparency, and customer satisfaction.

NITDA Director General, Kashifu Inuwa Abdullahi, received a personal commendation plaque during the event, recognising his unwavering support and commitment to prioritising citizens in agency operations.

The agency also secured a Special Recognition Award from the SERVICOM Office, celebrating its sustained initiatives to bridge government and citizens through high-quality service delivery.

In a further mark of excellence, NITDA was named the 2nd Best Performing Public Service Unit (PSU) Team B within the competitive MDAs category.

SERVICOM Framework Drives Public Service Reforms

SERVICOM, established to enhance service quality across Nigerian public institutions, assesses MDAs based on rigorous standards that ensure responsiveness to public needs.

NITDA’s triple honours reflect its strategic focus on leveraging technology to streamline services, foster accountability, and promote inclusive digital governance.

The awards align with broader federal efforts to reposition public service delivery amid Nigeria’s push for digital economy growth.

NITDA’s Digital Leadership Under Spotlight
Since its establishment, NITDA has spearheaded national ICT policies, infrastructure development, and capacity building, positioning Nigeria as an emerging digital hub.

The agency’s SERVICOM success underscores effective implementation of the National Digital Economy Policy and Strategy (2020-2030), enhancing e-government services and citizen engagement.

Kashifu Inuwa Abdullahi’s leadership has been pivotal in initiatives like the National Centre for Artificial Intelligence and Robotics, alongside partnerships driving broadband expansion and cybersecurity.

These recognitions come amid NITDA’s ongoing campaigns for data localisation, digital skills training, and startup ecosystem support.


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FCCPC Forces Ikeja Electric Into Compliance, Unseals Headquarters After Rights Breach

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Federal Competition and Consumer Protection Commission (FCCPC) has secured enforceable compliance from Ikeja Electric Plc, leading to the unsealing of the electricity distributor’s headquarters after regulatory intervention over consumer rights violations.

FCCPC Forces Ikeja Electric Into Compliance, Unseals Headquarters After Rights Breach

Ikeja Electric

The Commission had sealed the company’s headquarters on December 11, 2025, following its failure to comply with a directive of the Nigerian Electricity Regulatory Commission (NERC) to unbundle a Maximum Demand account into 20 individual accounts for a customer who had remained without electricity for more than two and a half years.

Following the enforcement action, Ikeja Electric entered into a binding undertaking with the FCCPC, committing to resolve all consumer complaints referred to it by the Commission within agreed timelines.

The FCCPC warned that any breach of the undertaking would trigger renewed and escalated enforcement under the Federal Competition and Consumer Protection Act (FCCPA).

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, said the intervention underscores the Commission’s resolve to protect consumers and enforce regulatory decisions.

“Our responsibility is to ensure that consumers are treated fairly and that service providers comply with lawful decisions and directives. Enforcement is not an end in itself. Where compliance is achieved and credible commitments are made, the Commission will respond appropriately,” Bello said.

He added that the resolution reflects a firm but balanced regulatory approach.

“We intervene decisively where consumer harm persists, and we de-escalate where enforceable compliance is secured. What remains constant is our duty to protect consumers and uphold regulatory accountability,” he said.

The FCCPC said the outcome sends a clear signal that consumer rights violations will attract decisive regulatory action, while companies that demonstrate genuine compliance will receive proportionate responses.


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