The growing adoption of artificial intelligence (AI) across Nigeria’s insurance sector is set to reshape the industry and possibly cost thousands of jobs as companies restructure their operations to embrace automation, data analytics, and digital customer engagement tools.
Industry experts warn that as insurers deploy AI to handle claims processing, market outreach, and customer service, up to 50 percent of the workforce could be displaced over the next few years.
According to findings by Daily Independent, nearly all 67 licensed insurance companies in Nigeria along with about 600 brokerage firms are integrating AI into daily operations, replacing manual paperwork and routine administrative tasks with automated systems.
Massive Transformation Underway
Though the total number of insurance employees in Nigeria has not been formally disclosed, a 2018 industry report estimated that about 7.9 million people were involved in formal insurance distribution networks. That figure includes workers in key institutions such as the National Insurance Commission (NAICOM), the Chartered Insurance Institute of Nigeria (CIIN), the Nigerian Insurers Association (NIA), and the Nigerian Council of Registered Insurance Brokers (NCRIB).
These institutions, along with loss adjusters and underwriting firms, are increasingly turning to AI-driven systems to improve speed, accuracy, and cost efficiency. The move, however, is expected to trigger extensive restructuring — and potential layoffs — across multiple business units.
While the sector’s financial performance has improved sharply, with listed companies reporting a sixfold rise in pre-tax profits between 2019 and 2024, insiders say the next wave of transformation will prioritise efficiency over headcount.
Automation Takes Over Routine Roles
Industry analysts say the first casualties of automation are likely to be roles that involve repetitive, manual work — including data entry, basic underwriting, and customer service functions now handled by AI-powered chatbots.
However, experts caution that AI will not necessarily erase all jobs. Instead, it is expected to create new roles in data science, AI programming, digital marketing, risk modelling, and compliance monitoring — positions that require advanced technical skills and retraining.
A global PwC report projects that up to 40 percent of jobs worldwide could be affected by automation by 2030, with the financial services sector among the most exposed.
Industry Leaders Endorse AI Adoption
Despite the looming disruption, Nigeria’s insurance leaders see AI as a necessary evolution.
Mr. Olusegun Omosehin, Commissioner for Insurance, has consistently advocated for digital innovation and the integration of AI in business operations.
Mr. Stephen Alangbo, Group Managing Director of Cornerstone Insurance Plc, described AI as “a game changer” for the industry.
“As an innovative organisation, we’ve developed Cici, an AI-enabled chatbot that guides customers through insurance purchases and claim submissions,” Alangbo said. “Our virtual assistant allows users to buy compulsory insurance policies and file claims instantly — improving speed and convenience.”
He added that AI has also strengthened the firm’s collaboration with brokers, helping them meet compliance obligations and avoid penalties through digital tools.
Regulators, Experts Push for Localised AI
At the 13th Nigerian Insurers Association (NIA) Chief Information Officers Conference held in Lagos last week, experts urged insurers to accelerate AI adoption while tailoring technology to Nigeria’s unique data environment.
Jackson Ikeibe, Chairman of the NIA Information Technology Committee, said AI could drastically reduce operational costs, lower premiums, and drive growth.
“Artificial intelligence opens a new frontier for economic opportunity. When properly applied, it will make insurance more efficient and responsive to customer needs,” Ikeibe stated.
Dimeji Ogundele, Vice Chairman of the Committee, echoed the call for localisation of AI solutions, urging closer collaboration between regulators and practitioners to ensure ethical and secure deployment.
The Road Ahead
Although AI integration remains in its early stages in Nigeria, momentum is building fast. For insurers, the challenge now is balancing innovation with human impact — embracing digital transformation without leaving their workforce behind.
If managed strategically, experts say, AI could usher in a more competitive, customer-focused, and data-driven insurance industry. If not, it risks deepening job losses in a sector that employs millions and underpins financial stability across the economy.
