Invest in AI, insurance sector urged

ZIMBABWE’S insurance industry should invest in artificial intelligence (AI) in order to operate smoothly in the future and support the country’s economic development, renowned commercial attorney Muchadeyi Masunda, has said.

In remarks made at the 2023 Zimbabwe Independent Insurance Survey Awards breakfast meeting held in Harare yesterday, Masunda said the insurance sector was a key actor in the economy.

“As such, insurance companies in Zimbabwe must reposition themselves and support the achievement of Vision 2030,” he said.

“Our insurance industry is tasked with provision of sound policies to citizens. As one of the major goals of Vision 2030 is to improve quality of life, the insurance industry is also tasked to provide better governance solutions as well as ensuring innovations that advocate for a better environment and climate change.”

He added: “For the insurance industry to thrive while going hand-in-hand with development objectives, its prosperity heavily relies on its ability to adapt to technological changes and adopt new innovations such as artificial intelligence to operate smoothly in the future.

“Moreso, in order for insurance companies to effectively support the achievement of Vision 2030 and build a world-class insurance industry, the insurance companies should appreciate that technology is rapidly evolving, and insurers need to invest in artificial intelligence, because as we know it, the world will be much further advanced in 2030, such as intelligent credit rating systems using big data and analytics.”

This, according to Masunda, will enhance efficiency in service delivery to individuals as well as corporate clients.

Masunda said culture could be the disruptive element that changes the game on the insurance market, changing the reputation of each player — or even the entire industry — from a grudge product to one that customers recognise as helping to protect what they value today and save for their future.

“Insurance has come a long way from its origins of insuring ships and their cargo, and nobody can be certain of what the future holds. But to make sure your firm can weather the highs and lows of whatever the future does bring, I believe the adoption of the right culture will be critical,” he said.

“Fast-forward even a few years and the world looks very different. More transactions will be carried out through robo-advice and customers will demand a more bespoke service with more control over their long-term application.

“Millennials will be starting families of their own and looking to protect their loved ones, with very different expectations from previous generations of how they interact with their insurer.”

Masunda, who is also chairperson of Alpha Media Holdings (AMH)’s Editorial Advisory Board of Trustees, added: “To succeed, firms will need a digital, customer-centric, innovative, agile culture that quickly adapts to change. This is a long way from where traditional insurers are today. I know from experience that you cannot change culture overnight — so now is the time to start preparing for action.”

AI, which is the simulation of human intelligence processes by machines, especially computer systems, can help facilitate development of more novel insurance products such as usage-based insurance products, for example the use of vehicle telematic devices for pay how you drive or pay as you drive products. Such products are more tailored to consumers’ needs, according to experts.

The Zimbabwe Independent Insurance Survey is an annual review of the local insurance industry that provides an analytical overview and expert opinion on the performance of the sector.

The Zimbabwe Independent partnered the National Social Security Authority to host the insurance survey awards.

This year the survey ran under the theme: From Surviving to Thriving. Repositioning for Vision 2030 —Building a world class insurance and pensions industry.

Vision 2030 is a unique transformative social, economical and political blueprint adopted by nations globally to improve the quality of life for their respective citizens.

AMH are the publishers of NewsDay, Zimbabwe Independent, The Standard, Southern Eye and Weekly Digest, a digital publication. It also operates Heart and Soul Broadcasting Services (HStv).-newsday