Consumer expectations are higher than ever, changing as fast as the digital landscape evolves. Modern policyholders demand faster, smarter, and more personalised experiences. This shift is pushing insurers in South Africa and across the continent to rethink how they engage with their customers.
For forward-thinking insurance leaders, artificial intelligence, advanced data analytics, and personalisation offer a unique opportunity to realise new value, boost operational efficiency, and deliver customer experiences that build lasting loyalty.
The rise of personalised insurance
Traditionally, insurance has taken a one-size-fits-all approach to underwriting, pricing, and communication. But with increased access to behavioural, transactional, and contextual data, insurers are able to design hyper-personalised products and services that reflect individual risk profiles and preferences.
McKinsey & Company research showed that companies leveraging personalisation at scale can increase revenue by 5 to 15% – companies that are more adept at using data to grow customer knowledge, see a greater return.
In the African context, where smartphone penetration and mobile-first behaviour are growing, personalisation isn’t just a luxury, it’s becoming a competitive necessity. Insurers must adapt to offer flexible cover options, digital self-service, and communication in customers’ preferred languages and platforms.
AI-driven underwriting and claims automation
AI is already making underwriting smarter and faster. Machine learning models can analyse large volumes of structured and unstructured data — including telematics, social media, and health data — to generate more accurate risk assessments.
Claims processing is also being reimagined. AI-powered systems can triage claims, detect fraud, and even settle simple claims without human intervention. This reduces turnaround times and improves customer satisfaction.
Insurers using AI for claims processing have seen a significant reduction in claim costs and an improvement in fraud detection.
Real-time customer insights through data integration
To deliver true personalisation, insurers must integrate data across silos — from CRM systems to IoT devices and third-party platforms. Real-time data allows insurers to anticipate customer needs, deliver contextual offers, and guide policyholders through every stage of their journey.
For example, South African insurtech, Pineapple, uses real-time data and AI to streamline customer acquisition and underwriting, making the user journey more transparent and intuitive.
Meanwhile, global players like Discovery have built entire ecosystems around behavioural data, incentivising healthy lifestyles and rewarding positive actions through platforms like Vitality.
Balancing personalisation with privacy
While customers want tailored experiences, they also expect transparency and control over how their data is used. The Protection of Personal Information Act (POPIA) in South Africa and other data privacy laws across Africa mean insurers must adopt responsible AI practices and ensure ethical data use.
This includes implementing explainable AI (XAI), enabling opt-in personalisation, and ensuring data is securely stored and shared only when necessary.
Preparing for a personalised future
For insurance leaders, the message is clear: AI and data aren’t just tools for optimisation — they are strategic assets that can reshape customer relationships and drive growth.
To be successful in this era, insurers must:
- Invest in data infrastructure and AI capabilities
- Break down internal data silos to unlock customer insights
- Prioritise privacy and ethical use of data
- Embrace a culture of experimentation and innovation
The future of insurance in Africa is not just digital — it’s intelligent, data-driven, and very personal.