Inside NIC’s plan to adopt artificial intelligence in insurance

“What this means is that instead of depending on people to work on customers’ claims, AI will do it, making processing easier and efficient,” he said.

The revelation shows how Tanzania’s insurance industry is steadily adopting cutting-edge technologies in service delivery.

Apart from settlement of claims, AI could also be used if an insurer wants to accurately analyse risks.

This is so because AI can analyse large amounts of data, including historical claims data, credit scores and social media activity.

“Such analysis enables insurers to offer personalised coverage to customers and thus come up with more accurate price policies,” Dr Doriye said.

Across the world, insurers use AI to improve customer service, increase efficiency and fight fraud more effectively.

For instance, within member states of the European Union, the use of AI applications makes the processing of claims more efficient and leads to faster settlement of claims for customers, according to a November, 2021 paper by Insurance Europe.

Insurance Europe, which is the European insurance and reinsurance federation, says AI can be used throughout the claims process, for instance in the motor vehicle sector from the submission of images of damage via a smartphone app to the repair of the vehicle or payment of the claim amount.

It can also be used to categorise incoming cases for claims handling in order to significantly reduce the case handing lead time for the customer.

According to Dr Doriye, digital transformation was unavoidable at the moment, adding that it was important for companies to prepare for change so that customers can get better and quick service.

Currently, he said, the NIC has improved the use of IT systems by 98 percent.

“Our plan is to digitise all systems and reach 100 percent by the end of this year,” he said during an interview at the 47th Dar es Salaam International Trade Fair (DITF).

The interview came shortly after Prime Minister Kassim Majaliwa’s directive to public and private institutions to invest in technologies in efforts to attract more investments and businesses.

Investing in technology was one of the directives that Mr Majaliwa issued when he graced the 47th DITF last Wednesday.

Dr Doriye stressed, “We want to reach a point where the system estimates the level of customer claims without human intervention. That is where we want to go and we believe we will get there.”

He said the Corporation was currently spending between 10 to 15 percent of its budget on improving IT systems. “That is why currently, customers can buy insurance policies without meeting any insurance officer. Everything is done electronically and that is the trend of the world,” he said.

To achieve the goals, NIC is also training its young employees on how to use high technology systems so that when the time comes there will be no skills gap.

Having existed for almost 60 years since it was established, there is a lot to learn, Dr Doriye stressed.

"Our expectation is that around this time next year we will already have conducted enough tests. We want our customers to experience service that they have never had in this country before,” he said.

By adopting IT systems in its operations, he said, the company was also keeping a close eye on security.

As such, enough funds, he said, were also being invested in that area as well in an effort to ensure that the system works effectively.

"We have been in the market for 60 years so it is time to show that we have become a new born. Tanzanians should expect more innovations and major improvements in the IT system with the aim of improving service delivery," Dr Doriye said.

The company’s gross written premiums increased to Sh124.5 billion in 2021/22, compared to Sh87.4 billion recorded during the previous year, according to the company's financial statement published last month.

Its profit before tax stood at Sh63.21 billion in 2021/22.