Connect with us

Uncategorized

CognitiveTechnology Reshaping Africa’s Insurance Sector

Published

on

Kindly share this post

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.


Kindly share this post

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

Uncategorized

Unity Bank Upgrades Corpreneurship Prize Money to N16M Per Stream as 30 New Winners Emerge

Published

on

Kindly share this post

In a bid to boost start-up capital and place more resources at the disposal of aspiring young entrepreneurs in Nigeria, retail lender, Unity Bank Plc has increased the prize money for winners of its flagship Entrepreneurship Development Initiative, known as Corpreneurship Challenge to 16 million Naira per stream.

Head, SME Banking, Dr. Opeyemi Ojesina addresses the participants at Delta NYSC Orientation camp before the commencement of the pitch presentation

Consequently, participants who emerge winners in the business pitch will henceforth win N800,000, N500,000, and N300,000 Business grants for the 1st, 2nd, and 3rd positions respectively as against the previous editions in which the sum of N500,000; N300,000 and N200,000 were handed out to respective winners in the Corpreneurship Challenge.

Launched in 2019 with pilots in 4 states – Lagos, Edo, Ogun, and Abuja and scaled to 10 States in 2020, the Corpreneurship Challenge initiative is promoted in partnership with the NYSC Skills Acquisition and Entrepreneurship Development, SAED. The initiative features a business pitch presentation where participants have the opportunity to present their business plans and stand a chance to win business grants.

At the recently concluded edition of the Corpreneurship Challenge for 2024 NYSC Batch A, Stream 1 NYSC service, 30 winners emerged including upcoming entrepreneurs developing innovative solutions in several business value chains such as Poultry farming, Fashion, and Pastries, among others, after participating in the business pitch that took place across the 10 NYSC Orientation Camps in Rivers, Delta, Anambra, Abia, Oyo, Ogun, Kebbi, Niger Sokoto and Zamfara States.

At the Delta State NYSC Orientation Camp in Issele-Uku, Folorunsho Kolade who pitched a Poultry farming business plan emerged as the overall winner to claim the N800,000 grand prize; Samuel Ayodotun. J. whose innovative footwear venture idea, Basky Footprint took the second spot to win the N500,000 cash prize; while another corps member, Udoji Chibuike Peter, whose venture plan on the footwear fashion value chain also emerged as the second runner-up to claim the N300,000 grant.

Also, at the NYSC Orientation Camp at Nonwa Gbam Tai, Rivers State, Dan Betobong Samuel’s business plan on food production claimed the top spot to clinch the N800,000 grand prize; while Linda Christopher’s Lily Pastries’ business plan emerged as the first runner-up to claim the N500,000 grant. Esther Jacob’s business pitch on the poultry value chain emerged as the second runner-up to win the N300,000 cash grant.

Speaking at the NYSC Orientation Camp in Rivers State, the Divisional Head, Retail and SME Banking, Mrs. Adenike Ambimbola commended the participating Corps Members for the quality of their business plans and pledged the Bank’s commitment to sustaining the Entrepreneurship Development Scheme.

While congratulating the winners, Mrs. Ambimbola said, “Unity Bank is proud to associate with the Skill Acquisition and Entrepreneurship Development (SAED) scheme of NYSC in providing interventions and support to budding entrepreneurs with promising ventures through the business grants to help turn these ideas into reality. We recognize the importance of investing in our youths and empowering them to drive positive change within our economy.”

Also speaking at the grand finale held in Delta State NYSC Orientation Camp, Dr. Opeyemi Ojesina, Head of SME Banking, Unity Bank expressed delight at the Unity Bank Corpreneurship Challenge’s growing profile as a leading business incubation platform and catalyst for entrepreneurship development in Nigeria.

He said, “Over the past five years, Unity Bank has steadfastly supported the Corpreneurship Challenge, witnessing its profound impact on youth empowerment and job creation nationwide.

“The programme has earned a reputation for its innovative approach, seamlessly integrating financial backing, mentorship, and skill development to nurture aspiring entrepreneurs.”

Ojesina further underscored the invaluable mentorship offered to participants, connecting them with seasoned professionals who provide crucial insights, guidance, and a roadmap for success.

He emphasized Unity Bank’s belief that true empowerment extends beyond financial aid to the cultivation of entrepreneurial acumen.

So far, Unity Bank has invested over N120 million in the initiative, which has now produced 369 winners since it was launched in 2019.

In 2021, the leadership of the NYSC bestowed on Unity Bank the “Icon of Youth Empowerment” award in recognition of the impact of the initiative.

The Corpreneurship Challenge continues to elicit growing interest among the corps members, attracting over 4,000 applicants and participation in every edition.


Kindly share this post
Continue Reading

Uncategorized

Cloud Energy Launches Solar Energy As A Serrvice for Stable Electricity

Published

on

Kindly share this post

Cloud Energy Solar, recognized as Nigeria’s premier solar energy provider, has initiated the Solar Energy as a Service programme, which aims to empower “Solar entrepreneurs” to offer electricity solutions for Micro, Small, and Medium Enterprises (MSMEs) by using Cloud Energy’s Solar Energy Storage System (ESS).

Cloud Energy Launches Solar Energy As A Serrvice for Stable Electricity

This is coming against the backdrop of societal challenges including inflation and high cost of living in the country.

Speaking to a group of Resellers during a virtual Zoom conference, Mr. Theophilus Nweke, managing director of Cloud Energy, emphasized that the launch of the Energy as a Service Programme underscores Cloud Energy’s unwavering dedication to expanding access to electricity across Nigeria…

Under the programme, the MD explained, that Cloud Energy would boost the entrepreneurial capacities of the Reseller by providing the equipment to produce power for embedded power clusters in markets, in high streets, and other commercial areas. Cloud Energy would also provide logistics, training, and technical support to ensure the sustainability of the Energy as a Service Programme.

The Reseller would find the clusters, mobilize them, distribute the power, and collect the tariff.  The original equipment is supplied on lease to the reseller who enjoys three days grace period

One significant concern among citizens today pertains to the necessity for critical Micro, Small, and Medium Enterprises (MSMEs) to remain inactive while awaiting electricity supply from the Distribution Companies (DISCOs), particularly following the removal of fuel subsidies. Furthermore, the escalating cost of diesel has led to many standby generators remaining inactive permanently.

The managing director of Cloud Energy elaborated that Solar Energy as a Service represents a patriotic innovation, ensuring electricity access on a Pay as You Use basis. This program revitalizes idle MSMEs, enhances national productivity, and fosters widespread employment opportunities for Nigerians

Solar Energy as a Service, which will create new opportunities for prudence and accountability within the Energy sector is not limited to Cloud Energy Resellers.

All stakeholders who share the commitment to expanding the boundaries of access to power in Nigeria are free to partner with Cloud Energy to attain the national power aspirations.

During the question-and-answer session, the managing girector assured the Resellers of the immediate take-off of the program while urging them to seize the opportunity to increase their streams of income for the good of the sector.

Cloud Energy was, established in 2015 with the rare attributes of knowledge, youth, and integrity.

The company has developed sustainable solutions in large-scale energy storage, mini-grids and captive power, and solar rooftops for homes.

Backed by credible after-sales support, Cloud Energy has branded the Sunbox series, electrical appliances, fans, television sets, freezers, and fridges that have brought fulfillment to many homes, offices, and MSMEs.

Cloud Energy is a major partner of the Federal Government’s Rural Electrification Agency to learn more about Cloud Energy, visit its website at www.cloudenergy.com.ng


Kindly share this post
Continue Reading

Uncategorized

Reps Mull Tax Crimes Commission to Curb Revenue Leakages

Published

on

Kindly share this post

The House of Representatives on Wednesday passed for second reading a bill seeking to establish a National Tax Crimes and Oversight Commission to tackle revenue leakages in the country.

Reps Mull Tax Crimes Commission to Curb Revenue Leakages

Titled “A Bill for an Act to Establish the National Tax Crimes and Oversight Commission to Address Revenue Leakages Emanating from Non-payment and Under Payment of Taxes, Irregularities in the Assessment, Reporting and Remittances of Taxes to Prevent and Combat Tax Related Crimes, to Ensure the Protection of Taxpayers Rights and for Related Matters,” the proposed legislation is sponsored by Benjamin Okezie Kalu, deputy speaker of the House,  and eight others.

Leading the debate on its general principles, Felix Uche Nweke, one of the co-sponsors, said the Commission, when established, will check irregularities in the assessment, reporting, and remittances of taxes, prevent and combat tax-related crimes, and plug all leakages in the tax administration system in the country.

The lawmaker noted that leakages occur where unscrupulous staff and agents of tax authorities collude with citizens to under-assess the tax-payer thereby resulting in underpayment.

He said leakages also occur in the form of tax evasion, especially such that is encouraged and condoned by the tax collector and more especially among multinational corporations operating within the country.

Nweke further said leakages also occur where there are non-remittances of collected taxes, that is to say where government does not get the total amount of taxes collected as a result of revenue diversion by fraudulent staff of tax authorities.

He said there is a need to establish an Independent Tax Crimes and Oversight Commission, which will have the capacity to investigate, audit, prevent and combat tax related crimes.

This, the lawmaker said, will effectively prevent international tax evasion and other transnational organised crimes and abuses of the nation’s public finance system.

He stressed that the bill seeks to  promote economic efficiency and effective tax administration system, detect and deter evasion, fraud and abuse in Nigeria’s tax administration system and to protect taxpayer’s rights.

 

Nweke said: “The amount of revenue available to any government determines the extent to which such a government may be able to provide public goods and services. It is a pointer to how far a nation can ensure her growth and development.

“While taxation is considered the most important means of generating public revenue, it is worthy of note that nations that strive to develop aim at putting in place a fair, just, efficient and simplified tax administration system which builds confidence amongst the citizens and as well motivates and encourages citizens to pay their taxes.

“While it is one thing to fix the amount of taxes to be paid, it is another for tax collection authorities and assessors to determine the right amount of taxes to be paid in accordance with the provisions of extant tax laws. This will definitely contribute to our national security through prevention of tax related crimes, prevention of illicit financial flow derived from tax evasion, international tax schemes, cybercrime, etc.

“The Tax Crimes and Oversight Commission will not function as a law court, it will not duplicate the functions of the Tax Appeal Tribunals established in accordance with section 59(1) of the Federal Inland Revenue Service (Establishment) Act, 2007 and ti will not be saddled with any form of quasi-judicial functions.”


Kindly share this post
Continue Reading

Trending