“Data is the new oil and lifeblood of the digital age and it can be used massively for decision making across the insurance value chain and ecosystem and product development.”
Abiodun Aribike, National Insurance Commission head of IT provides the compelling reason offered by McKinsy to justify switch to data analytics, declaring that data analytics-driven insurance firms are 23 times more likely to acquire customers, six times as likely to retain customers, and 19 times as likely to be profitable as a result. With this assured, he said, “Data analytics will surely make the insurance sector reach new heights.”
This statement by Aribike, Commission’ IT czar while delivering a paper on “Improving Access To Insurance In Nigeria Through Digital Solutions” at a recent retreat for financial journalists in Uyo, Akwa Ibom State, opens widows of opportunities for insurance operators. With data analytics, he said insurance market would improve the way things are done and, would no longer be lagging behind but would be positioned to make digital agenda a high priority.
Not sparing what will follow if the operators down grade its compelling need and look away, Aribike said, “If this is not done it will be difficult to deliver on customers’ expectations. It is time for insurers to evolve and respond. This will require a different set of skills, culture and operating model.”
Adjunct to this, he urged the industry to embrace new technologies that will help in providing digital solutions for increased insurance penetration such as cloud computing, mobile technology, artificial intelligence (AI), distributed ledger technology and blockchain and internet of things.
On data analytics, he said insurers can gather information from all data devices in individual custody and organisations and deploy data from these wide range of sources and use in customer acquisition and retention, personalised service and pricing, risk assessment, cost cutting, usage based product development and 360-degree customer profiles. Other helps from data analytics are, improving customer satisfaction, fraud prevention and detection, faster claims settlement, underwriting automation, customized policy offerings, call centre optimisation and more.
With a chopper view of the wonders of digital solutions from the IT fort of NAICOM where he is at the control centre, Aribike, tells the insurance industry to catch up quickly with new technology, innovations, adjust to the changing environment (from traditional to digital), and also, be at par with developments and changing customer expectation.
He speaks more, “There is an urgent need for the insurance industry to adopt technologies to provide digital solutions. When this is done it will improve access to insurance.” He identified the improvement platforms to include, digital channels of distribution, enhanced access to insurance products and coverage, providing cost efficiency for policy holders and insurers, speedy issuance of coverage and claims payment and, providing innovative products.