The Role of Responsible AI in Shaping Africa’s Insurance Industry
The Managing Director and Chief Executive Officer of Coronation Insurance Plc, Olamide Olajolo, has emphasized the need for responsible artificial intelligence (AI) deployment within Africa’s insurance sector. His remarks were delivered during a strategic roundtable at the Africa Financial Industry Summit 2025, titled “Smart Insurance: Sharpening up Claims, Risk Modelling and Operations with AI and Insurtech.” The session focused on how AI and insurtech are reshaping the continent’s insurance landscape through smarter data utilization, process automation, and enhanced customer experience.
Key Insights from the Roundtable
Moderated by Mohamed Ali Jebira, Partner, Financial Services Advisory at Deloitte, the discussion brought together industry leaders such as Bernard Ohemeng-Baah, Deputy Commissioner of Ghana’s National Insurance Commission. The conversation highlighted the transformative potential of AI in various aspects of the insurance value chain.
Olajolo pointed out that claims processing is currently the area where AI delivers the most measurable impact. He explained that automation technologies are significantly reducing claim cycles and improving accuracy. For instance:
- Automated image recognition for vehicle damage
- Predictive models that identify potential fraud
These innovations not only shorten claim cycles but also enhance fairness. According to Olajolo, between 60 and 70 per cent of major insurers globally have already implemented AI solutions in claims management.
Underwriting Transformation Through Machine Learning
In terms of underwriting transformation, Olajolo described how machine learning enables insurers to assess risks more accurately and inclusively. By combining behavioural, environmental, and financial data, machine learning facilitates real-time risk scoring. This leads to more accurate pricing and broader inclusion, particularly for underserved segments. Additionally, it ensures that pricing remains fair and acceptable to customers.
However, the CEO cautioned against rushing into AI adoption without a solid ethical and regulatory foundation. He shared that Coronation Insurance has often adjusted its rollout plans to maintain trust and compliance. For example:
- Adjustments made to ensure regulatory clarity
- Strengthening data governance and transparency to build trust with customers and regulators
Challenges in AI Adoption
Olajolo noted that many insurers across Africa struggle to move beyond pilot projects because AI is often treated as a technology experiment rather than a core business transformation initiative. He emphasized that the main reason many insurers get stuck at the pilot stage is due to this misalignment. To achieve large-scale adoption, AI projects must be tied to clear business outcomes—such as underwriting accuracy, claims efficiency, or fraud reduction—and championed by senior leadership.
Human Capital Development
Addressing human capital development, Olajolo underscored the importance of building talent as a critical success factor in AI adoption. He advocated a hybrid approach combining insurtech collaboration, outsourcing, and in-house capability development. This includes:
- Collaboration with insurtech to access cutting-edge innovations quickly
- Outsourcing for highly technical areas like data engineering and cybersecurity
- Building in-house teams to maintain long-term control over data, intellectual property, and customer experience
A Call for Discipline and Trust
Olajolo concluded with a message that resonated strongly across the roundtable: “Responsible AI adoption is not about moving fast; it’s about moving with discipline, empathy, and trust—values that define our brand and the future of smart insurance in Africa.”
His insights positioned Coronation Insurance as a thought leader navigating the delicate balance between innovation, regulation, and customer trust in the continent’s evolving insurance landscape. His emphasis on data readiness, cross-functional collaboration, and measured deployment provided a clear roadmap for insurers seeking to harness AI’s transformative potential responsibly.
Broader Implications for Africa’s Financial Sector
The strategic roundtable formed part of AFIS 2025’s broader programme exploring how digital transformation and technological innovation can accelerate Africa’s financial sovereignty and long-term growth. As the continent continues to embrace AI, the lessons learned from leaders like Olajolo will play a crucial role in shaping a sustainable and inclusive insurance ecosystem.