INSURTECH INNOVATION: LEVERAGING ARTIFICIAL INTELLIGENCE AND BLOCKCHAIN FOR ENHANCED PERFORMANCE IN NIGERIAN INSURANCE COMPANIES

C. P. EHIOGU; S. OMORODION

C. P. EHIOGU College of Insurance and Financial Management Ogun State, Nigeria
S. OMORODION College of Insurance and Financial Management Ogun State, Nigeria.

Keywords: Insurtech, operational efficiency, Nigerian insurance industry, artificial intelligence, blockchain technology

Abstract

Nigerian insurers still operate with the lowest penetration rate in Africa (0.5 %), largely because conventional underwriting and pricing processes remain manual, opaque and error-prone. By means of a cross-sectional survey of 102 respondents from five insurance companies in Lagos State, Nigeria, with a 67 % response rate, this study examined the effects of artificial intelligence on underwriting/risk assessment and blockchain technology on insurance pricing anchoring on the Task-Technology Fit (TTF) theory. Data were collected through a 5-point Likert-scale questionnaire and analysed using descriptive and inferential statistics. Artificial intelligence had no appreciable impact on underwriting/risk assessment (β = 0.105, p = 0.297); blockchain technology greatly affected insurance pricing (β = 0.245, p = 0.014). Based on these findings, the study recommends employee training programmes in AI and blockchain, development of blockchain-based pricing platforms, and public-awareness campaigns to promote Insurtech adoption and enhance industry efficiency and competitiveness.