Navigating Tech Trends in Africa’s Insurance Sector
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At the AIE insurance conference, Tony from COVER Magazine had a conversation with Clinton Da Costa Brown from SSP, who shared his insights on the evolving insurance technology landscape. Clinton expressed his appreciation for the conference’s impressive organisation and vibrant atmosphere, noting a significant improvement from previous years. He emphasised that the African insurance market is experiencing notable technological advancements, particularly in AI and automation. However, Clinton highlighted several common pitfalls insurers face when implementing new technologies. He stressed that a clear strategic vision is crucial before diving into AI or other tech solutions. Without addressing core functionalities and compliance requirements first, investments in technology can lead to wasted resources and ineffective solutions.
Clinton also discussed the challenges associated with technology providers, particularly when changes in ownership or management occur. Such shifts can impact the stability and support of the systems, making it vital for insurers to conduct thorough due diligence when selecting a provider. Understanding the provider’s background, funding, and long-term vision is essential to ensure alignment with the insurer’s strategic goals.
Despite these challenges, Clinton remains optimistic about Africa's insurance industry. He observed significant consolidation and competition, which he believes will drive innovation and capital acquisition. While customer experience remains a key area needing attention, the growing focus on technology as an enabler presents exciting opportunities for the sector. Clinton's experience underscores the importance of balancing technological advancements with a strong strategic foundation to successfully navigate the changing landscape of African insurance.
Key takeaways
1. Tech Trends in Africa: AI and automation are significant trends, but insurers often face challenges with technology implementation.
2. Strategic Vision Needed: Insurers must have a clear strategic plan and understand core functionalities before adopting new technologies.
3. Challenges with Providers: Changes in ownership or management of technology providers can impact system stability and support, making thorough due diligence crucial.
4. Focus on Core Functions: Ensure core functionalities and compliance are addressed before investing in advanced technologies.
5. Optimism for Africa’s Market: Despite challenges, there is significant advancement and competition in Africa’s insurance market, creating opportunities for innovation.
6. Customer Experience: Insurers need to balance new technology with an improved customer experience to meet evolving market demands.
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