{"id":4895,"date":"2021-02-04T07:08:28","date_gmt":"2021-02-04T07:08:28","guid":{"rendered":"https:\/\/techclot.com\/index.php\/2021\/02\/04\/nigeria-munich-re-bets-on-automation-to-strengthen-the-insurance-market\/"},"modified":"2021-02-04T07:08:28","modified_gmt":"2021-02-04T07:08:28","slug":"nigeria-munich-re-bets-on-automation-to-strengthen-the-insurance-market","status":"publish","type":"post","link":"https:\/\/techclot.com\/index.php\/2021\/02\/04\/nigeria-munich-re-bets-on-automation-to-strengthen-the-insurance-market\/","title":{"rendered":"Nigeria: Munich Re bets on automation to strengthen the insurance market"},"content":{"rendered":"<p><a href=\"https:\/\/www.google.com\/url?rct=j&#038;sa=t&#038;url=https:\/\/www.theafricareport.com\/63234\/nigeria-munich-re-bets-on-automation-to-strengthen-the-insurance-market\/&#038;ct=ga&#038;cd=CAIyHDkyYmU1MGQ5NjY1NjYxZTA6Y28udWs6ZW46R0I&#038;usg=AFQjCNHBRz8VdcQUQ0zq2OEQ9oZCa51bUw\">Nigeria: Munich Re bets on automation to strengthen the insurance market<\/a><\/p>\n<p><noscript><\/noscript><\/p>\n<header class=\"header\" id=\"ja-header\">\n<div class=\"header-grid\">\n<button data-target=\"main-menu\" class=\"nav-button\" type=\"button\" role=\"button\" aria-label=\"open\/close navigation\"><i><\/i><\/button><br \/>\n<a class=\"header-logo tar-logo\" href=\"https:\/\/www.theafricareport.com\/\"><br \/>\n<img decoding=\"async\" width=\"360\" data-src=\"https:\/\/www.theafricareport.com\/app\/themes\/theafricareport-2019\/dist\/images\/theafricareport-logo-black.svg\" alt=\"The Africa Report.com\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\"><br \/>\n<\/a><\/p>\n<\/div>\n<nav class=\"header-menu\" id=\"main-menu\">\n<a class=\"logo-sticky tar-logo\" href=\"https:\/\/www.theafricareport.com\/\"><img decoding=\"async\" data-src=\"https:\/\/www.theafricareport.com\/app\/themes\/theafricareport-2019\/dist\/images\/theafricareport-logo-black.svg\" width=\"168\" alt=\"The Africa Report.com\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\"><\/a><\/p>\n<\/nav>\n<\/header>\n<p><main class=\"main\" readability=\"0.75173935177329\"><\/p>\n<section id=\"tar-unit-take-over-container\" class=\"adsense\"><\/section>\n<div class=\"layout-sidebar space\">\n<div class=\"content\">\n<div class=\"ja-post ja-post-single\" readability=\"7.7861172430709\">\n<p>Data Mining<\/p>\n<div class=\"ja-post-single-meta\" readability=\"8\">\n<p>\nBy <strong>David Whitehouse<\/strong><br \/>Posted on Thursday, 4 February 2021 02:21 <\/p>\n<\/div>\n<div class=\"ja-post-single-thumbnail\">\n<figure>\n<img data-recalc-dims=\"1\" decoding=\"async\" width=\"570\" height=\"419\" data-src=\"https:\/\/i0.wp.com\/techclot.com\/wp-content\/uploads\/2021\/02\/a12gkT.jpg?resize=570%2C419&#038;ssl=1\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image lazyload\" alt data-srcset=\"https:\/\/techclot.com\/wp-content\/uploads\/2021\/02\/a12gkT.jpg 570w, https:\/\/www.theafricareport.com\/media\/2021\/02\/abuja-300x220.jpg 300w, https:\/\/www.theafricareport.com\/media\/2021\/02\/abuja-177x130.jpg 177w, https:\/\/www.theafricareport.com\/media\/2021\/02\/abuja-342x251.jpg 342w, https:\/\/www.theafricareport.com\/media\/2021\/02\/abuja-708x520.jpg 708w, https:\/\/techclot.com\/wp-content\/uploads\/2021\/02\/a12gkT.jpg 728w\" data-sizes=\"auto, (max-width: 570px) 100vw, 570px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 570px; --smush-placeholder-aspect-ratio: 570\/419;\"><figcaption>People queue at an ATM in Abuja, March 30, 2020. REUTERS\/Afolabi Sotunde<\/figcaption><\/figure>\n<\/div>\n<div class=\"ja-post-single-intro\" readability=\"8\">\n<p>Munich Re is banking on automated underwriting as a key to unlocking Nigeria\u2019s insurance market as it rolls out its service in West Africa for the first time. <\/p>\n<\/div>\n<div class=\"u-format\">\n<p><html readability=\"24.747970779221\"><body readability=\"50.46645021645\"><\/p>\n<p>The reinsurer has supplied its automated underwriting to an <strong>unnamed South African insurer that has expanded into Nigeria<\/strong>, says Paul Donnelly, executive vice-president for Europe, the Middle East and Africa at Munich Re Automation Solutions in Dublin. It will be technically feasible for the service be up and running this year, subject to the final decision of the unnamed client, he adds.<\/p>\n<p><strong>READ MORE <a href=\"https:\/\/www.theafricareport.com\/50141\/africa-boost-insurance-growth-through-mobile-phone-partners\/\">Africa: Boost insurance growth through mobile phone partners<\/a><\/strong><\/p>\n<p>Donnelly argues that automation and the use of artificial intelligence (AI) makes underwriting decisions fairer and more efficient. The technique is suited to African markets, many of which <strong>lack capability and an insurance culture,<\/strong> he says. \u201cThe technology can do some of the heavy work.\u201d<\/p>\n<ul>\n<li>Munich Re offers automated solutions to primary insurers either as a paid service or as part of an agreement where it underwrites insurance liabilities.<\/li>\n<li>It also uses AI and machine learning techniques to identify which data points in the insurance application process are irrelevant and can be dropped.<\/li>\n<\/ul>\n<h3>\u2018Flying blind\u2019<\/h3>\n<p>In South Africa, Munich Re counts <strong>Sanlam, Old Mutual<\/strong> and <strong>Liberty<\/strong> among its clients, and also has a corporate customer in Egypt.<\/p>\n<p>But in less-developed African markets, the data used to feed its machine learning may not exist. That leads to an element of \u201cflying blind\u201d, Donnelly says.<\/p>\n<ul>\n<li>Munich Re\u2019s service offers analytics that can extrapolate and make predictions from a limited number of individual cases.<\/li>\n<li>Between 15,000 and 20,000 people can be enough to generate such predictions, Donnelly says.<\/li>\n<li>Munich Re works with primary insurers to help them gather and analyse a \u201ccritical mass\u201d of customer data, Donnelly says.<\/li>\n<li>Better national census data would help the process too, he adds.<\/li>\n<\/ul>\n<div class=\"print-hidden js-shortcode\" readability=\"7\">\n<p class=\"email-collector-continues-below\">The article continues below<\/p>\n<section class=\"email-collector\">\n<div class=\"email-collector-header\" readability=\"8.5\">\n<div class=\"email-collector-header-image\">\n<img data-recalc-dims=\"1\" decoding=\"async\" data-src=\"https:\/\/i0.wp.com\/techclot.com\/wp-content\/uploads\/2021\/02\/NMrPqA.jpg?w=640&#038;ssl=1\" alt=\"Get your free PDF: Top 200 banks 2019\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\">\n<\/div>\n<div class=\"email-collector-header-content\" readability=\"12\">\n<p class=\"email-collector-header-content-title-1\">Free download<\/p>\n<p class=\"email-collector-header-content-title-2\">Get your free PDF: Top 200 banks 2019<\/p>\n<p class=\"email-collector-header-content-title-3\">The race to transform<\/p>\n<p class=\"email-collector-header-content-text\">Complete the form and download, for free, the highlights from The Africa Report\u2019s Exclusive Ranking of Africa\u2019s top 200 banks from last year. Get your free PDF by completing the following form<\/p>\n<\/div>\n<\/div>\n<form class=\"email-collector-form js-tar-newsletter-signup\" data-id=\"_signup_1\" data-ajax-action=\"tar_newsletter_signup_get_pdf\">\n<p>\n<label for=\"subscriber_email\">Email Address <span>*<\/span><\/label><br \/>\n<input type=\"email\" name=\"subscriber_email\" id=\"subscriber_email\">\n<\/p>\n<div>\n<p>SUCCESS<\/p>\n<p>ERROR<\/p>\n<\/div>\n<\/form>\n<\/section>\n<\/div>\n<h3>Data gaps<\/h3>\n<p>Data is key to making decisions in insurance. A white paper from Munich Re gives the example of <strong>diabetes<\/strong>, a medical condition that sets off alarm bells for life insurers and can lead to extensive checks.<\/p>\n<ul>\n<li>Yet AI supports the conclusion that life expectancy for people for diabetes is usually the same as for everyone else, Munich Re says.<\/li>\n<li>The company argues that the fact it has a financial stake, or \u201cskin in the game\u201d, in the outcome of its uses of automated process sets it apart from artificial intelligence consultancies.<\/li>\n<li>Previous experience has shown that <strong>onboarding one key client<\/strong> in a country can lead to rapid wider adoption, Donnelly says.<\/li>\n<\/ul>\n<p><strong>Automated systems relying on AI are only as good as the data with which they are fed.<\/strong> The South African market, as Donnelly notes, is similar in terms of depth to Europe and Asia.<\/p>\n<div class=\"print-hidden js-shortcode\">\n<aside class=\"signup shortcode\" readability=\"1\">\n<p>Africa Insight<\/p>\n<\/aside>\n<\/div>\n<p><strong>READ MORE <a href=\"https:\/\/www.theafricareport.com\/51232\/africas-insurance-fails-to-deliver-on-covid-19\/\">Africa\u2019s insurance fails to deliver on COVID-19<\/a><\/strong><\/p>\n<p>However, Nigeria has one of the world\u2019s lowest rates of insurance penetration, and the market is dominated by mandatory third-party car policies. Cultural resistance among customers and the difficulty of establishing cost-effective sales are among the reasons for the weak market. <strong>That suggests gathering customer data will be an uphill struggle<\/strong>.<\/p>\n<h3>Bottom line<\/h3>\n<p>Automated underwriting in Nigeria has everything to prove in the face of obstacles in data collection that have not been encountered in South Africa.<\/p>\n<p><\/body><br \/>\n<\/html><\/div>\n<\/div>\n<\/div>\n<div class=\"sidebar\">\n<aside class=\"signup mbml\" readability=\"1\">\n<p>Africa Insight<\/p>\n<\/aside>\n<\/div>\n<\/div>\n<div class=\"layout-panel related-posts\" data-section=\"business\">\n<p>More Business<\/p>\n<section class=\"grid-4-medium-1 has-gutter-l\">\n<article class=\"ja-post\" readability=\"0.10980392156863\">\n<div class=\"ja-post-thumbnail\">\n<a href=\"https:\/\/www.theafricareport.com\/62574\/south-africas-clicks-switches-sound-off-at-retailer-musica-as-covid-speeds-up-inevitable-demise\/\"><br \/>\n<img data-recalc-dims=\"1\" decoding=\"async\" width=\"456\" height=\"262\" data-src=\"https:\/\/i0.wp.com\/techclot.com\/wp-content\/uploads\/2021\/02\/QIhaRi.jpg?resize=456%2C262&#038;ssl=1\" class=\"attachment-tar-post-thumbnail-list-large size-tar-post-thumbnail-list-large wp-post-image lazyload\" alt data-srcset=\"https:\/\/techclot.com\/wp-content\/uploads\/2021\/02\/QIhaRi.jpg 456w, https:\/\/www.theafricareport.com\/media\/2021\/02\/RTX7UD89-300x172.jpg 300w, https:\/\/techclot.com\/wp-content\/uploads\/2021\/02\/QIhaRi.jpg 732w, https:\/\/www.theafricareport.com\/media\/2021\/02\/RTX7UD89-227x130.jpg 227w, https:\/\/www.theafricareport.com\/media\/2021\/02\/RTX7UD89-342x196.jpg 342w\" data-sizes=\"auto, (max-width: 456px) 100vw, 456px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 456px; 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--smush-placeholder-aspect-ratio: 570\/419;\"><figcaption>People queue at an ATM in Abuja, March 30, 2020. REUTERS\/Afolabi Sotunde<\/figcaption><\/figure>\n<\/div>\n<div class=\"ja-post-single-intro\" readability=\"8\">\n<p>Munich Re is banking on automated underwriting as a key to unlocking Nigeria\u2019s insurance market as it rolls out its service in West Africa for the first time. <\/p>\n<\/div>\n<div class=\"u-format\">\n<p><html readability=\"24.747970779221\"><body readability=\"50.46645021645\"><\/p>\n<p>The reinsurer has supplied its automated underwriting to an <strong>unnamed South African insurer that has expanded into Nigeria<\/strong>, says Paul Donnelly, executive vice-president for Europe, the Middle East and Africa at Munich Re Automation Solutions in Dublin. It will be technically feasible for the service be up and running this year, subject to the final decision of the unnamed client, he adds.<\/p>\n<p><strong>READ MORE <a href=\"https:\/\/www.theafricareport.com\/50141\/africa-boost-insurance-growth-through-mobile-phone-partners\/\">Africa: Boost insurance growth through mobile phone partners<\/a><\/strong><\/p>\n<p>Donnelly argues that automation and the use of artificial intelligence (AI) makes underwriting decisions fairer and more efficient. The technique is suited to African markets, many of which <strong>lack capability and an insurance culture,<\/strong> he says. \u201cThe technology can do some of the heavy work.\u201d<\/p>\n<ul>\n<li>Munich Re offers automated solutions to primary insurers either as a paid service or as part of an agreement where it underwrites insurance liabilities.<\/li>\n<li>It also uses AI and machine learning techniques to identify which data points in the insurance application process are irrelevant and can be dropped.<\/li>\n<\/ul>\n<h3>\u2018Flying blind\u2019<\/h3>\n<p>In South Africa, Munich Re counts <strong>Sanlam, Old Mutual<\/strong> and <strong>Liberty<\/strong> among its clients, and also has a corporate customer in Egypt.<\/p>\n<p>But in less-developed African markets, the data used to feed its machine learning may not exist. That leads to an element of \u201cflying blind\u201d, Donnelly says.<\/p>\n<ul>\n<li>Munich Re\u2019s service offers analytics that can extrapolate and make predictions from a limited number of individual cases.<\/li>\n<li>Between 15,000 and 20,000 people can be enough to generate such predictions, Donnelly says.<\/li>\n<li>Munich Re works with primary insurers to help them gather and analyse a \u201ccritical mass\u201d of customer data, Donnelly says.<\/li>\n<li>Better national census data would help the process too, he adds.<\/li>\n<\/ul>\n<div class=\"print-hidden js-shortcode\" readability=\"7\">\n<p class=\"email-collector-continues-below\">The article continues below<\/p>\n<section class=\"email-collector\">\n<div class=\"email-collector-header\" readability=\"8.5\">\n<div class=\"email-collector-header-image\">\n<img data-recalc-dims=\"1\" decoding=\"async\" data-src=\"https:\/\/i0.wp.com\/techclot.com\/wp-content\/uploads\/2021\/02\/NMrPqA.jpg?w=640&#038;ssl=1\" alt=\"Get your free PDF: Top 200 banks 2019\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\">\n<\/div>\n<div class=\"email-collector-header-content\" readability=\"12\">\n<p class=\"email-collector-header-content-title-1\">Free download<\/p>\n<p class=\"email-collector-header-content-title-2\">Get your free PDF: Top 200 banks 2019<\/p>\n<p class=\"email-collector-header-content-title-3\">The race to transform<\/p>\n<p class=\"email-collector-header-content-text\">Complete the form and download, for free, the highlights from The Africa Report\u2019s Exclusive Ranking of Africa\u2019s top 200 banks from last year. Get your free PDF by completing the following form<\/p>\n<\/div>\n<\/div>\n<form class=\"email-collector-form js-tar-newsletter-signup\" data-id=\"_signup_1\" data-ajax-action=\"tar_newsletter_signup_get_pdf\">\n<p>\n<label for=\"subscriber_email\">Email Address <span>*<\/span><\/label><br \/>\n<input type=\"email\" name=\"subscriber_email\" id=\"subscriber_email\">\n<\/p>\n<div>\n<p>SUCCESS<\/p>\n<p>ERROR<\/p>\n<\/div>\n<\/form>\n<\/section>\n<\/div>\n<h3>Data gaps<\/h3>\n<p>Data is key to making decisions in insurance. A white paper from Munich Re gives the example of <strong>diabetes<\/strong>, a medical condition that sets off alarm bells for life insurers and can lead to extensive checks.<\/p>\n<ul>\n<li>Yet AI supports the conclusion that life expectancy for people for diabetes is usually the same as for everyone else, Munich Re says.<\/li>\n<li>The company argues that the fact it has a financial stake, or \u201cskin in the game\u201d, in the outcome of its uses of automated process sets it apart from artificial intelligence consultancies.<\/li>\n<li>Previous experience has shown that <strong>onboarding one key client<\/strong> in a country can lead to rapid wider adoption, Donnelly says.<\/li>\n<\/ul>\n<p><strong>Automated systems relying on AI are only as good as the data with which they are fed.<\/strong> The South African market, as Donnelly notes, is similar in terms of depth to Europe and Asia.<\/p>\n<div class=\"print-hidden js-shortcode\">\n<aside class=\"signup shortcode\" readability=\"1\">\n<p>Africa Insight<\/p>\n<\/aside>\n<\/div>\n<p><strong>READ MORE <a href=\"https:\/\/www.theafricareport.com\/51232\/africas-insurance-fails-to-deliver-on-covid-19\/\">Africa\u2019s insurance fails to deliver on COVID-19<\/a><\/strong><\/p>\n<p>However, Nigeria has one of the world\u2019s lowest rates of insurance penetration, and the market is dominated by mandatory third-party car policies. Cultural resistance among customers and the difficulty of establishing cost-effective sales are among the reasons for the weak market. <strong>That suggests gathering customer data will be an uphill struggle<\/strong>.<\/p>\n<h3>Bottom line<\/h3>\n<p>Automated underwriting in Nigeria has everything to prove in the face of obstacles in data collection that have not been encountered in South Africa.<\/p>\n<p><\/body><br \/>\n<\/html><\/div>\n<\/div>\n<\/div>\n<div class=\"sidebar\">\n<aside class=\"signup mbml\" readability=\"1\">\n<p>Africa Insight<\/p>\n<\/aside>\n<\/div>\n<\/div>\n<div class=\"layout-panel related-posts\" data-section=\"business\">\n<p>More Business<\/p>\n<section class=\"grid-4-medium-1 has-gutter-l\">\n<article class=\"ja-post\" readability=\"0.10980392156863\">\n<div class=\"ja-post-thumbnail\">\n<a href=\"https:\/\/www.theafricareport.com\/62574\/south-africas-clicks-switches-sound-off-at-retailer-musica-as-covid-speeds-up-inevitable-demise\/\"><br \/>\n<img data-recalc-dims=\"1\" decoding=\"async\" width=\"456\" height=\"262\" data-src=\"https:\/\/i0.wp.com\/techclot.com\/wp-content\/uploads\/2021\/02\/QIhaRi.jpg?resize=456%2C262&#038;ssl=1\" class=\"attachment-tar-post-thumbnail-list-large size-tar-post-thumbnail-list-large wp-post-image lazyload\" alt data-srcset=\"https:\/\/techclot.com\/wp-content\/uploads\/2021\/02\/QIhaRi.jpg 456w, https:\/\/www.theafricareport.com\/media\/2021\/02\/RTX7UD89-300x172.jpg 300w, https:\/\/techclot.com\/wp-content\/uploads\/2021\/02\/QIhaRi.jpg 732w, https:\/\/www.theafricareport.com\/media\/2021\/02\/RTX7UD89-227x130.jpg 227w, https:\/\/www.theafricareport.com\/media\/2021\/02\/RTX7UD89-342x196.jpg 342w\" data-sizes=\"auto, (max-width: 456px) 100vw, 456px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 456px; 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