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.
House of Representatives is considering a bill seeking to promote sustainable rural development, reduce poverty, and enhance the livelihoods of Nigerians living in agrarian communities.
Titled “The National Integrated Rural Development Bill, 2025,” the proposed legislation aims to provide wage employment opportunities for unskilled labourers in rural areas, guaranteeing a daily wage of N3,500 for every employed adult household member.
Sponsored by Hon. Marcus Onobun, member representing Esan Central/Esan West/Igueben Federal Constituency of Edo State, the bill, which is awaiting its second reading on the floor of the Green Chamber, seeks to establish a legal and institutional framework to promote sustainable development across Nigeria’s rural regions.
The proposed law applies to all rural areas within Nigeria’s territorial boundaries as defined by relevant demographic and economic criteria.
Part III of the bill provides that every adult household in rural communities who volunteers for unskilled manual work through local development projects shall be guaranteed a minimum of 100 days of paid employment per fiscal year.
“The Agency shall ensure that every rural household, whose adult members volunteer to do unskilled manual work through local development projects, is guaranteed a minimum of 100 days of wage employment per fiscal year,” the bill states.
“Every employed adult household shall be entitled to a daily wage of N3,500 for each day of work.”
The legislation also proposes the creation of the National Integrated Rural Development Agency, which will oversee and coordinate the implementation of rural development programmes across the country. The Agency’s responsibilities will include monitoring and evaluating projects, promoting innovation and technology adoption, and facilitating collaboration among relevant ministries and stakeholders.
In a bid to ensure inclusivity, one-third of the employment opportunities under the proposed scheme will be reserved for women in rural communities.
The bill further outlines objectives such as reducing rural poverty, improving agricultural productivity, ensuring food security, and enhancing access to education, healthcare, and other essential social services.
The proposed law also recommends the establishment of a Governing Council for the Agency, with its Chairman to be appointed by the President on the recommendation of the Minister of Agriculture and Food Security.
Additionally, all revenues generated by the Agency will be exempted from income tax, while contributions to its fund will be tax-deductible.
Speaking on the significance of the bill, Hon. Onobun said it seeks to tackle one of Nigeria’s most persistent socio-economic challenges rural poverty.
“This bill aims to promote sustainable rural development across the nation by reducing poverty, improving infrastructure, and enhancing livelihoods through integrated and coordinated efforts,” he said.
Despite Nigeria’s vast natural and human resources, the country continues to struggle with widespread rural underdevelopment.
According to the National Bureau of Statistics (NBS) and the United Nations Development Programme (UNDP), about 63% of Nigerians roughly 133 million people were classified as multidimensionally poor as of 2024, with the highest rates recorded in the northern regions and conflict-prone parts of the Middle Belt.
General News
Ndukwe Kalu Foundation 2025 COSPRA Summit Focuses on Empowering Digital Citizens, Building a Safer Online Generation
The Ndukwe Kalu Foundation (NKF) has announced the much-anticipated 2025 edition of its flagship Child Online Safety Protection and Reporting of Abuse (COSPRA) Summit, themed “Empowering Digital Citizens: Building a Safer Online Generation.”
This groundbreaking summit, proudly sponsored by the Nigeria Internet Registration Association (NiRA), will unite Nigeria’s leading voices in technology, education, and child protection to address one of the most urgent challenges of our time — creating a safer digital space for children and young people.
With key implementing partners and co-sponsors: including the Nigerian Communications Commission (NCC), National Information Technology Development Agency (NITDA), Internet Society (ISOC), National Agency for the Prohibition of Trafficking in Persons (NAPTIP), and the Lagos State Education Board, COSPRA 2025 is set to spark a national movement toward responsible digital citizenship.
According to Ms. Erica Okibe, Executive Secretary of the Ndukwe Kalu Foundation: “COSPRA isn’t just another summit — it’s a clarion call to action. We are uniting institutions, parents, and digital stakeholders to empower our young people to thrive safely and responsibly in the online world.”
Now in its flagship phase, COSPRA has become a rallying point for government agencies, educators, innovators, and advocates working to combat online abuse, misinformation, and child exploitation. The 2025 edition will feature interactive panels, policy dialogues, youth innovation showcases, and a national pledge for child online safety and is scheduled to hold on the 20th of November, at the Afe Babalola Hall at the University of Lagos.
As Nigeria’s digital space continues to expand, COSPRA stands as a bold reminder that protecting children online is not optional — it’s essential.
National Civil Society Council of Nigeria (NCSCN) has cleared the Nigerian Communications Commission (NCC) of allegations of bias and victimization in its 2025 staff promotion exercise, describing the controversy as a product of misinformation and internal sabotage.
In a statement issued over the weekend, Blessing Akinlosotu, executive director of the Council, said findings from the Council’s independent inquiry revealed that the NCC’s promotional examination under the leadership of Dr. Aminu Maida, executive vice chairman, was conducted strictly in line with Public Service Rules and established institutional procedures.
Akinlosotu said the Council was compelled to intervene following multiple petitions and media reports alleging irregularities, marginalization, and breach of federal character in the promotion process.
According to him, the NCSCN launched an extensive fact-finding mission, held sessions with management, and engaged some of the aggrieved staff before arriving at its conclusion.
The NCSCN noted that while some staff passed the exams but were not promoted due to manpower limits, the Commission followed a clear and objective scoring framework.
Akinlosotu added that participants were provided with performance summaries and encouraged to seek clarification through proper internal channels.
He disclosed that the Council’s review team found no grievous breach of fairness, adding that no human endeavor can be absolutely perfect.
He further explained that the team observed minor administrative lapses which the NCC had since acknowledged and apologized for through its Human Capital Department.
On the performance of the NCC’s new leadership, the Council commended Maida for what it termed as a visionary and transparent approach to regulation, noting significant improvements in accountability and consumer protection since his assumption of office.
The NCSCN, however, cautioned staff members fueling discontent within the Commission, describing them as “internal saboteurs” bent on tarnishing the image of the organisation.
It warned that the Council would not hesitate to expose such individuals if they continued to spread falsehoods.
The Council also appealed to the media to avoid sensationalism in reporting sensitive institutional matters, urging journalists to uphold professionalism and factual reporting in the public interest.
“Our investigation found that the promotional examination was conducted transparently, with panels drawn from all six geopolitical zones and the Federal Character Commission providing oversight. We discovered no evidence of deliberate marginalization or victimization.
“The current leadership has demonstrated an impressive commitment to transparency, innovation, and service improvement in the telecommunications sector.
“We call on all aggrieved staff to explore internal mechanisms for redress instead of embarking on campaigns of calumny against a performing leadership,” the statement read in parts”, Akinlosotu stated.
Zenith Bank Grows Gross Earnings to N3.4trn on Strong Interest Income
World Economic Forum Head Predicts AI, Crypto Bubbles
Reps Propose N3,500 Daily Wage for Unskilled Labour
Ndukwe Kalu Foundation 2025 COSPRA Summit Focuses on Empowering Digital Citizens, Building a Safer Online Generation
No Federal Character Breach in 2025 NCC Promotions — NCSCN
Telecom2 days agoMeta, NDPC to Finalize $32.8m Data Privacy Settlement Terms November 3
E-Business2 days agoBuilding Trust, Accelerating Growth: Securing Africa’s Generative AI Future
E-Business2 days agoCybersecurity Firm Shares a Guide to Deleting your Digital Footprint from the Internet
General News2 days agoPrince Nnamdi Ekeh, Oxford-Trained Tech Whizkid , CEO of Konga group, Honoured With Forbes and EuroKnowledge Award
Telecom2 days agoTransforming Africa: NITDA DG Makes Urgent Call for Digital Investment
E-Financial2 days agoSEC Says Nigerians Have Lost N316Bn to Ponzi Schemes
General News2 days agoNIPR Launches Annual PRICE Awards, Ceremony Set for December 7, 2025
E-Financial2 days agoStandard Chartered Affirms Full Compliance with CBN’s N200Bn Capital Rule