INSURANCE DIGITALIZATION; OPTION FOR EFFECTIVE PROTECTION OF POLICYHOLDERS IN NIGERIA

Abstract

This study investigated insurance digitalization as a viable option for effective protection of policyholders in Nigeria. Specifically, the study examined the extent to which insurance companies adopt digital tools in providing insurance policies for policyholders, analysed the implications of using digital technology to reduce insurance fraud in Nigeria and established measures to ensure sustainability in the use of digital tools in providing insurance cover in Nigeria. The study is a descriptive survey which involved a sample of insurance policyholders from the top five insurance companies in Southeast Nigeria. The data were generated through online survey and subjected to statistical analysis using descriptive statistics (mean and percentage analysis). The findings revealed that 86 per cent showed willingness to purchase insurance policies through digital platforms, digital platforms such as mobile apps, social media, chatbots and Artificial Intelligence (AI) are used to a very low extent by the insurance companies. Also, there was increased efficiency and real time premium payments. However, the complaints emanating from the use of digital platforms in underwriting and claims handling are not efficiently resolved by the insurance companies. Policyholders’ education on use of digital channels, enactment of digital insurance laws, and periodic review of digital insurance channels and swift handling of customer complaints from digital channels were recommended.