General News
CognitiveTechnology Reshaping Africa’s Insurance Sector
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.
National Information Technology Development Agency (NITDA) has reaffirmed its commitment to promoting indigenous technology operators, dismissing allegations that it encouraged the deployment of fake locally made personal computers.
Responding to accusations from the Certified Computer Manufacturers of Nigeria (CCMON) regarding the alleged spread of counterfeit locally produced PCs, NITDA stressed that it limits government IT contract registration to firms with at least 51 percent Nigerian ownership.
The agency stressed that it aligns with the Federal Executive Council–approved “Renewed Hope Nigeria First Policy” of May 2025, which prioritises Nigerian-made goods and mandates foreign procurements only when no local alternative exists.
NITDA said it is also investing in talent development through its Office for Nigerian Digital Innovation (ONDI), supporting startups, SMEs, and training public servants to meet global standards.
Addressing the “SpeedStar PC saga,” NITDA clarified that the project in question dates back to 2019, and any hardware faults after six years of use cannot be attributed to the agency.
Meanwhile, Beta Computers makers of the SpeedStar PC and a founding member of CCMON has petitioned the Ministry of Communications, Innovation and Digital Economy over the alleged deployment of counterfeit SpeedStar units by NITDA contractors.
In an April 3, 2025 petition, Will Anyaegbunam, managing director, Beta Computers’ accused certain contractors of sabotaging presidential directives on patronising locally made computers.
He claimed that despite repeated requests since August 2024, NITDA has refused to reveal the identity of the contractor linked to counterfeit SpeedStars supplied to an institution in northern Nigeria.
Anyaegbunam further alleged possible collusion within the agency and vowed to pursue legal action to protect the brand’s equity, which has been trademarked since 1996.
Beta Computers has also filed a Freedom of Information request to obtain the names of all contractors who supplied SpeedStar PCs to Gombe State University and other institutions since 2019.
Airtel Nigeria has taken another bold step in its digital transformation and quality of service drive with the launch of Airtel Assist, a WhatsApp-based self-service chatbot designed to offer real-time support to millions of the network’s customers.
Built to meet the growing needs of today’s digital consumer, Airtel Assist provides round the clock full-service experience that allows customers to check balances, buy airtime or data, make secure payments, troubleshoot issues, and access personalised assistance all from the convenience of WhatsApp.
At the core of this innovation is Airtel Nigeria’s commitment to putting people first, ensuring customer experiences are faster, more intuitive, and deeply personalised.
Speaking on the launch, Airtel Nigeria CEO, Dinesh Balsingh, said, “This is Airtel meeting Nigerians exactly where they are, on platforms they trust and use every day.
With Airtel Assist, we are adapting technology at the personal level. It’s fast, secure, and always available, designed to serve real people with real needs, in real time. As a company with a constant focus on customer satisfaction, this is one of the ways we make customer care more accessible.”
The new chatbot highlights Airtel’s continued integration of AI-powered tools to scale service delivery, reduce wait times, and maintain secure customer interactions, solidifying its position as a customer-first, innovation-led brand in Nigeria’s telecom landscape.
It also demonstrates the company’s clear ambition to lead innovation in Nigeria’s telecom sector by adopting tools that are secure, scalable, and inclusive.
To emphasize this perspective, Ismail Adeshina, Director of Marketing at Airtel Nigeria, noted that Airtel Assist was developed with both convenience and empathy in mind.
Ismail said, “Everything about Airtel Assist is designed to simplify and enhance the way our customers engage with us. Whether it’s to check data balance in the middle of a conversation, buying data while commuting, or resolving issues after hours, Airtel Assist is always available, right there on their phones.”
Meanwhile, the product’s intuitive design and ease of use is a demonstration of adaptive technology, adapted for the nuances of local consumers, added Oyebowale Akideinde, Head of Digital Products & Innovation.
“With Airtel Assist, we’re unlocking a human way to connect on one of Nigeria’s favourite digital platforms: WhatsApp! You can now recharge, check balances, and get help instantly,” he said. He also noted that all Airtel subscribers may activate Airtel Assist by sending a WhatsApp message to +2348028800000 or clicking https://wa.me/2348028800000.
By bridging the gap between digital sophistication and everyday convenience, Airtel Nigeria is setting a new benchmark in customer care, one that puts the power of self-service, choice, and real-time resolution into the hands of every user.
Reported cyber attack on the Information Communication Technology (ICT) platform of the Nigeria Customs Service (NCS) has caused significant disruptions to cargo clearance operations at ports across the country.
Licensed Customs agents are already counting their losses to demurrage charges on their consignments as a result of the disruption.
Confirming the development, Mr. Maiwada Abdullahi, spokesman and assistant comptroller of Customs, told Vanguard that the attack occurred sometime ago, adding however, that the system has been restored.
He stated: “Yes, our platform was attacked some time ago, but it has been rectified and is now fully operational. We have strengthened our systems to ensure that cybercriminals will find it much more difficult to penetrate in the future.”
Regarding potential compensation, Abdullahi disclosed that discussions are ongoing with several stakeholders on the matter and hinted at possible relief measures for importers whose goods were delayed during the system outage.
Reacting to the development, Mr. Lucky Amiwero, president, National Council of Managing Directors of Licensed Customs Agents, (NCMDLCA), said that there is a default in the new B’Odogwu home grown ICT platform being promoted by the Customs.
Amiwero also said that the same glitch being experienced also occurred before the B’Odogwu initiative.
He, however, lampooned the Lagos Chamber of Commerce and Industry (LCCI), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, (NACCIMA), for their docile stand against happenings at the Port.
He stated: “The government needs to overhaul the newly introduced B’Odogwu ICT platform, there are defects that needs to be corrected.
“The same defects that was experienced during the era of West Blue before Ngozi Okonjo Eweala who was the Finance Minister at that time intervened, is the same issue currently affecting the B’Odogwu system.
“The glitch has resulted to huge demurrage, huge storage charges, distortion in business plan and high cost of clearance.
“Manufacturers Association, Lagos Chamber of Commerce and Industry (LCCI), Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) are all there doing nothing. They cannot even react to the situation. All they do is to hold conferences.
“These groups ought to be at the Vanguard of protest against these anomalies rocking the port industry but they chose to keep quiet as if all is well.”
Similarly, Mr. Olawale Odu, an importer and licensed Customs agent, said that the government through the Nigeria Customs Service should engage terminal operators and shipping companies to find a way to assuage the losses to importers by granting them waivers.
NITDA Reacts as Firm Petitions over Deployment of Fake PCs
Airtel Nigeria Launches ‘Airtel Assist’ on WhatsApp
Cyber Attack Hits Customs Platform, Disrupts Clearance Operations
ATU, AFRINIC Urge Governments, Regulators to Develop Internet Resilience Framework
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