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Consumer skepticism, others hinder adoption of tech-insurance

By Cynthia Alo

Operators in the insurance industry have said that consumers’ scepticism over online business transactions as well as data unavailability are some of the obstacles to full adoption of technology in the sector.

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Speaking to Vanguard Insurance, Head, Corporate Communications and Services, Leadway Assurance, Olunbunmi Adeleye, said that prior to now, insurance activities used to be largely manually driven, but now there has been a significant increase in the adoption of technology in the industry.

Adeleye stated: “Although there is significant increase now in the adoption of technology, cost of purchasing a good technology, consumer skepticism in transacting business online as well as data availability poses a challenge to the full adoption of technology in the industry.

“Technology has the potential to change how insurance consumers perceive the industry. This can only be achieved if insurers change their mindsets about products by shifting the focus to customer needs, engaging in technology partnerships with Financial Technology companies, FinTechs, and Insurance Technology companies, InsurTechs, addressing internal legacy processes and creating a culture of continuous innovation.”

She noted that only insurers who are willing to embrace the challenge will be around to reap the rewards.

Head of Non-Life business at AIICO Insurance, Mr. Taofeek Ayeni, said, “Technology gives value and is more convenient. However, where payment issues exists which are peculiar to the network of the various banks and the payment portal, this is usually discouraging.”

Ayeni noted that the percentage of the revenue from technological source is still growing and can only be better with an increase in public awareness and trust in the insurance industry.

He opined that the industry can get better with continuous improvement on technology as backbone for prompt online claims payments and public awareness.

Group Head, Life at Goldlink Insurance Plc, Mr. Sule Kamoru, said that the industry may not have gotten to an impressive stage of using technology due to fraudulent activities but the industry must be careful not to leverage on technology totally.

 

 

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