Subscribe and share for more in-depth Economic and Business Analysis

 Insurtech trends and its reshaping of Insurance

y (Insurtech) refers to the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model. Insurtech is a combination of the words “insurance” and “technology,” inspired by the term fintech. It is of utmost importance to embrace digital technologies for insurers and enhance their presence in the marketplace to gain market share with the increased customer base and custom offerings.

The belief driving insurance companies and investments by venture capitalists in the space is that the insurance industry is ripe for innovation and disruption. Insurtech is exploring avenues that large insurance firms have less incentive to exploit, such as offering ultra-customized policies, and social insurance, and using new streams of data from Internet-enabled devices to dynamically price premiums according to observed behaviour.

Understanding Insurtech and its global impact

Insurance is an old business, one of the oldest financial businesses and it tends to favour those with deep pockets and long experience in the market. Traditionally, broad actuarial tables are used to assign policy seekers to a risk category. The group is then adjusted so enough people are lumped together to ensure that, overall, the policies are profitable for the company.

This approach does, of course, result in some people paying more than they should be based on the basic level of data used to group people. Among other things, Insurtech is looking to tackle this data and analysis issue head-on. Using inputs from all manners of devices, including GPS tracking of cars to the activity trackers on our wrists, these companies are building more finely delineated groupings of risk, allowing products to be priced more competitively.

In a global market, Insurtech is developing solutions like ultra-customized policies, social insurance, and dynamically pricing premiums utilizing new streams of data from Internet-enabled devices. Insurtech assists insurers in collecting and analyzing consumer data that may be used to target the proper client at an affordable price. Insurtech also aids in creating better projections of consumer demands, purchasing quantities, and decision-making and insurance planning through the usage of machine learning, artificial intelligence, and cloud computing.

According to the Insurance Barometer’s 2021 survey, 36% of American respondents planned to get life insurance in 2021. Moreover, insurance companies are progressively investing in digital technologies to cut costs, increase productivity, and improve the overall client experience.

The global InsurTech market revenue is valued at $532.7 million in 2018 and is expected to reach $1,119.8 million by 2023, growing at a CAGR of 16.0% during the forecast period 2018-2023.

Covid-19 as the emergence of Insurtech improvement

The global health crisis has had a positive impact on Insurtech market growth as insurance policies increased tremendously among customers. Policies such as health insurance, personal insurance, and home insurance have increased rapidly in the market to provide advanced tech-based services to customers.

The banks and financial institutions are witnessing transformation with the emergence of FinTech vendors, thereby disrupting the traditional model of operations and processes. Insurers face stiff competition, and the insurance market is considered mature in most countries. The digital and analytical tools have opened new revenue models and value chains through digital brokers. The market size value in 2022: -USD 5.45 billion

The report contains an in-depth analysis of vendors' profiles, which includes an overview and offerings; and a competitive landscape. The emergence of technologies, such as AI and ML, is impacting the market growth and organizations are adopting InsurTech solutions for the online marketplace and easy claims processing among others.

The FinTech industry, over the last couple of years, has realized the need and opportunity for InsurTech software. The InsurTech vendors offer software that simplifies the decision-making process for the customers, and the analytics software helps insurers to understand the current need and demands in the market.

Although many of these innovations are long overdue, there are reasons why the incumbent insurance companies are so reluctant to adapt. Insurance is a highly regulated industry with many layers of jurisdictional legal baggage to deal with. As such, the major companies have survived this long by being incredibly cautious, which has made them shy away from working with any startups—let alone startups in their own, very stable industry.

This is a bigger problem than it sounds, as many of Insurtech startups still require the help of traditional insurers to handle underwriting and manage catastrophic risk. That said, as more Insurtech startups garner consumer interest with a refined model and a user-friendly approach, they may find that the incumbent players warm to the idea of Insurtech and become interested in buying up some of the innovation.

Angola Tops Nigeria as Africa’s Biggest Oil Producer in August

According to a Bloomberg survey of monthly output, Nigeria loses its crown as Africa’s largest producer for the first time since 2017. According to the survey, Angola produced a total of 1.17 million barrels in the month of August, exceeding Nigeria’s 1.13 million barrels.

According to Bloomberg, Nigeria’s oil production has been on a consistent decline since 2020 and the government has blamed massive levels of theft on the pipelines that crisscross the oil-rich Niger Delta in Southern Nigeria. According to the survey, Libya came in a close third at 1.07 million barrels and is projected to surpass Nigeria in the coming months.

The Nigerian Upstream Petroleum Regulatory Commission's statistics present a grimmer picture, with output last month coming in at just 972,000 barrels per day. When condensate, a light hydrocarbon that is free from OPEC limitations, is added, the amount increased to 1.18 million barrels.

Nigeria’s exported goods were worth N7.4 trillion in Q2 2022, the highest on record

According to the National Bureau of Statistics' most recent report on foreign trade, Nigeria exported goods worth N7.41 trillion in the second quarter of 2022, a 47.5% rise over the N5.02 trillion reported in the same period of 2021.

Additionally, export value increased by 4.3% from the N7.1 trillion reported in Q1 2022 to the preceding quarter. Notably, Nigeria's exports during the study period were the highest recorded. Nigeria's trade balance climbed to a surplus of N1.97 trillion as a result of the rise in export revenues, the greatest since Q2 2018.

The list of the African giant's top exports, which includes urea after crude oil and natural gas at the top, remains the same. The total amount of crude oil exported in the reviewed period was N5.9 trillion, representing an astonishing 45.1% year-over-year growth.

Capital inflows into the Telecom sector hit $153.5 million in Q2 2022

In Q2 2022, the Nigerian telecommunications industry drew capital imports of $153.5 million. While this was the sector's largest inflow in the previous six quarters, the amount was above the $107.46 million that the sector saw in the entire year of 2021.

The National Bureau of Statistics (NBS) reported that the capital importation figure for the second quarter of this year increased by 165% over the $57.79 million the sector drew in the first quarter.

In the US, before the creation of the Federal Reserve in 1913, each bank printed its own money.

The Lord of the Rings: The Return of the King (2003)

The Lord of the Rings: The Return of the King is a 2003 epic fantasy 

 by J. R. R. Tolkien. The sequel to 2002's 

“It is better to ask forgiveness, than permission” 

Nigeria's exports exceed records amidst raging inflation and record low Oil production 

Issue #78: Nigeria’s exported goods were worth N7.4 trillion in Q2 2022, the highest on record

According to those who have deployed Robotic Process Automation (RPA), robots might potentially fill 52% of full-time equivalent positions. As a result, the human workforce may be reassigned to tasks that bring more value to the business according to the  

Robotic Process Automation, to put it briefly, is using computer software to complete routine operations more quickly and correctly than a human could. Hence, as RPA adoption rates rose from 12% in 2019 to 20% in 2021 a large number of enterprises gradually embraced the technology's distinctiveness. By 2025, it is anticipated that the robotic process automation sector will produce a total of about $22.5 billion. Without a doubt, the use of RPA has helped firms grow their output and throughput while cutting down on turn times. Robots are similar to humans in that they can read databases, open emails and attachments, and follow "if/then" reasoning.

Automation, on the other hand, does not seek to replace humans with either machines or the other way around. Instead, it aims to foster human intellect and innovation. A BOT costs about one-third of what an equivalent employee would. These BOTs operate continuously, require little supervision, take no breaks, and are able to process enormous volumes of data quickly while maintaining their attention and committing no errors. Robots that perform robotic process automation (RPA) are ideal for handling numerous repetitive tasks automatically. As a result, workers have more time to focus on tasks that are more rewarding, like building solid relationships with customers, using data analysis to gain a competitive edge, or creating novel financial products.

According to the most recent forecast from 

, the market for robotic process automation (RPA) software will generate $2.9 billion this year, an increase of 19.5% from 2021. The market for RPA software is expected to continue growing by double digits in 2023, increasing 17.5% annually, though more slowly than in previous years. In fact, Gartner predicts that until 2024, organizations will adopt at least three of the 20 categories of software that are process-agnostic and enable hyper-automation. This is because the drive to achieve hyper-automation will force it.

The most popular RPA tools nowadays are Blue Prism, Automation Anywhere (AA), and UiPath. They are thought to be the main participants in the RPA sector. If you are a small firm or a student researching RPA, AA and UiPath both provide community versions that you can use for free.

The Role of RPA in the Financial Industry

Numerous back-office procedures that used to be labour-intensive for bank employees have been greatly simplified through robotic process automation. Banks have successfully reduced human involvement by substituting machines for manual and laborious tasks. As technology continues to advance at a rapid rate, financial institutions all over the world are aiming to boost productivity, reduce expenses, and improve efficiency. Automation has been a major factor in this shift, and in recent years, RPA has been crucial to job execution in financial institutions. Additionally, RPA is used in the current banking environment to automate a variety of tasks like automatic report generating, anti-money laundering, mortgage lending, and credit card processing. RPA is also a cost-effective solution that, by offering convenient performance, helps banks improve efficiency and save time. Furthermore, it assists in removing human error, allowing banks to have data that is more precise and accurate. RPA can monitor statutory updates and modifications and swiftly incorporate the results into financial institutions' anti-money laundering strategies. Furthermore, the ongoing process of compiling and analyzing data from internal and external sources helps the relationship manager maintain control over their client portfolio while being compliant. As a result, banks have embraced RPA technology to increase their productivity by automating labour. Consequently, the RPA in financial services is being fueled by banks' implementation of RPA for various financial activities.

RPAs automate business processes that ultimately improve revenues and product offering

Finance x TEch: RPA and how it is changing the nature of business

It was with great joy and smiles that Liz Truss, the newly elected prime minister, inherited a "not-so-happy" U.K. economy after the election by conservatives and confirmation by the Queen on Tuesday. Truss, who defeated former chancellor Rishi Sunak by a narrow margin, is now in a prime position to lead the U.K. out of turbulence.

The circumstances surrounding Truss's emergence are strikingly similar to those of the great Margaret Thatcher, who, as a conservative, also took the helm of an embattled United Kingdom economy. Truss inherits a recession-bound economy with 

, surging energy prices, and a cost-of-living crisis. On the political angle, similar to her erstwhile role as foreign secretary, she’s still confronted with the Russian-Ukrainian crisis, 

 push to secede from the U.K., among other issues.

UK Prime MinsterLiz Truss', lead against Rishi Sunak

With a possible election in 2024, Liz Truss and the conservative party know for sure that they must deliver! Truss knows she must deliver a heroic "Margaret Thatcher" or an exit blow will "touch her" and her party, who have endowed so much trust in her.

Let’s take a look at Truss’ economic and political ideologies and her plans for the sixth-largest economy in the world.

Truss’ ideologies: Is this what the U.K. needs now?

"I campaigned as a conservative, and I will govern as a conservative," was a reassuring catchphrase in Truss’ victory speech on Monday. Truss, in line with her party’s ideology for the economy, has made it clear that she 

cut taxes, spend extra, and grow the economy

. While this is not what an inflation-embattled economy needs now, it is obvious that Truss is more growth-oriented than she is concerned about inflation.

Speaking of taxes, Truss’ drive for a low-tax economy is planned to take effect through a series of tax reforms and reversals, estimated to cost about 

. This includes a planned reversal of windfall taxes earlier slammed on extraordinary profits of oil and gas companies; the cancellation of a planned 

 in corporate taxes; a suspension of the 

 green energy levy; a VAT cut of 5%; a reversal of the increase in National Insurance Contribution (NIC) rates at a cost of 

 per year; amongst other expected reforms.

From a spending perspective, Truss aims to increase defence spending from a current 2.3% of GDP to 3%. Also, she has laid out a plan to freeze energy bills in response to the energy crisis, which would also cost about £100 billion, according to 

. While the expansionary fiscal policy depicted by the above measures is against the Bank of England’s sole drive to slow down inflation, we hope to see how all these play out in the coming weeks when the new cabinet releases a planned emergency budget which should reflect the reforms.

Super-Lizzie-Truss: On a Mission to Rescue the Economy

As discussed earlier, the newly elected PM is entering office at a critical moment in the history of the United Kingdom. In this light, she has a lot on her plate as regards resuscitating the economy and dealing with the cost of living and energy crises, which have been exacerbated by the Russian-Ukrainian war. For context, Britain’s energy regulator, Ofgem, predicted that starting in October, energy prices will jump by 

While the expected fiscal loosening and tax cuts are set to relieve households and save them some cash, the energy crisis is also set to be taxed as the new administration plans to freeze household energy bills. While the price cap is yet to be confirmed, there are reports that the upper limit may be capped at around £2,500 a year, as opposed to the anticipated £3,549 in October.

In conclusion, while we wait for all these to unfold and be enforced, we’d also love to see how Truss balances her plan with an urgent need to tame inflation ravaging the economy.

UK residents are facing a fresh cost of living crisis amidst high inflation and a looming energy crisis.

The UK amidst some of the worst Economic headwinds elects her new Prime Minister

The Emergence of Liz Truss: Key to Saving the UK’s Economy?

Subscribe to our Newsletter for more Technology deep dives

Throughout the COVID-19 pandemic of the past two years, the value placed on quality data has exploded. The argument could be made that in today’s environment—that is, one riddled with economic turmoil, record-high inflation, and talks of a looming recession in the aftermath of a global pandemic—data is in greater demand than ever before.

An organization’s ability to democratize its data and transform it into valuable insights is a crucial function with a value that cannot be overstated. 

Data-backed decision-making has a measurable positive impact on organizations, as a 

 of C-suite executives from around the globe discovered that: “Companies that excel at integrating data into their strategy, operations and culture are largely outpacing their peers in revenue growth and profitability.” 

At the same time, we have entered the era of “stakeholder capitalism,” with many companies acknowledging that success is contingent on their ability to serve all stakeholders—including employees, customers, suppliers, the environment, communities and, of course, shareholders.

Against this backdrop, top leaders are recognizing that as data becomes their most important resource, trust must become their most important value

Billions of bytes of data are generated every second

Think of a collection of data sets that are so large or complex (comprising: images, texts, audio, and videos) and cannot be analyzed by traditional databases or tools such as spreadsheets. That is exactly what big data is.

The amount of data generated by the internet is so large. Matter of fact, there are about 2.5 quintillion bytes of data created each day by internet users worldwide. 

 revealed that the size of global data is expected to grow at a compound annual growth rate (CAGR) of 13.2% to about $274.3 billion by the end of 2022.

According to big data growth statistics, in 2019 the market was forecasted to grow by 20%. In 2012 and 2013, the growth rate of big data was as high as 61% and 60% respectively. This growth is expected to continue to increase because of the increase in internet usage. According to Forbes, the number of registered internet users in 2014 was approximately 3 billion and by 2019 this figure had increased to reach 4.1billion. Thus there had been an unprecedented increase in global data.

Data centres and Silos are the cornerstones of the digital economy

Big Data is actively applicable across all spectrums of life and further digitization

Data analytics and big data help businesses understand and map consumer buying patterns, trends and needs.  Through this E-commerce providers, vendors and digital marketplaces can better serve better stakeholders and offer better services.

Big Data analytics helps to drive high ROI marketing campaigns, which result in improved, lead generation and sales.  Through data analytics and mining of data on content consumption marketers can better map and track consumer interests screen time to better generate demand and qualify leads for business needs.

Big data help researchers and Policymakers track the trends in education and draw insights on how to improve, target and influence state-building through education and learning.  Adequate data generation and analysis will help provide better education and financing options for students

 Data analytics is useful for delivering quality healthcare delivery, research and tracking of disease cycles unique to different countries and demographics to keep ahead of a health crisis like the COVID-19 pandemic.  This was used by the Pioneering 54Gene in talking and tracking covid cases in Africa.

How has big data impacted the Financial Industry?

The financial industry is one of the top investors in big data according to 

IDC Semiannual Big Data and Analytics Spending Guide

. The amount of data generated by the financial industry is huge. And the ability to put that data to use in making business decisions and effectively process it to obtain insight is very critical to staying competitive.

Through the improvement of data analysis, Banks easily can monitor credit patterns and scores.  It also helps to monitor or flag atypical activities and anomalies that may signal fraudulent transactions or money laundering.

Data gathering and analysis of customer banking and spending habits through a Bank’s services will provide more accurate insights into the needs activities and the quality of the bank customer to determine what further services the customer will need.

Data generated in the digital economy requires mining and sorting; we explore how big data shapes commerce and the Economy

Finance x TEch: 5 ways big data shapes the digital Economy

Nigeria’s GDP grows for the 7th straight quarter: Non-Oil to the rescue yet again

After a dreadful run of inflation figures and a number of other indicators this year, the Nigerian Bureau of Statistics (NBS) finally delivered some good tidings last week, with Nigeria’s real Gross Domestic Product (GDP) rising by 

While the Q2 2022 GDP growth rate we saw last week is a drop from the 5.01% growth recorded in Q2 2021, it is interestingly an improvement compared to the 3.11% growth recorded last quarter. This figure, which also translates to seven straight quarters of GDP growth, proves some sort of resilience of the Nigerian economy in the aftermath of the COVID-19 pandemic and the recession of 2020. It is also a resilient run from the -6.1% slump in GDP in Q2 2020 after the COVID-19 pandemic struck.

While it is glaring that oil production is constantly falling, one other critical trend we saw from the recent GDP report is the increasing gap between the non-oil and oil sector contributions to GDP, in a country whose revenue “largely depends” on oil.

Q-o-Q Nigerian oil production output

Sadly, we’ve seen the contribution of the oil sector to GDP fall from 13.86% ten years ago in Q2 2012, to a meagre 6.33% in the reference period. Also, oil production in the country has fallen from average daily production of 2.38 mbpd ten years ago in Q2 2012, to 2.02 mbpd pre-pandemic levels in Q2 2019, and now to 1.43 mbpd in Q2 2022. How disastrous!

 Oil production output and capacity are sadly falling on the back of oil theft, declining upstream investment and an exodus of International Oil Companies (IOCs), reiterating the fact that it’s high time we looked away to a more productive non-oil sector. The non-oil sector contributed 93.67% to GDP in the reference period.

GROWTH DRIVERS: NON-OIL SECTOR TO THE RESCUE

GDP Non-oil contribution

While the oil sector slumped by 11.77% (y-o-y) in Q2 2022, the Non-Oil sector proved to be more resilient and grew by 4.77% (y-o-y).

The Non-Oil sector and the GDP in its entirety were buoyed by growth in telecommunications  (6.55% y-o-y), trade (4.51%), manufacturing (3.00%), and agriculture (1.20%). The finance and insurance and transportation sectors also lent support to the recorded growth. Interestingly, the telecommunications sector displayed a sterling performance in Q2 2022. Recall that there was a ban on new SIM card registration between December 2020 and April 2021, so TelCos lost a good number of subscribers in 2021. However, between December 2021 and June 2022, there were 9 million new telecom subscribers in the country. Hence,  new subscribers coming in, and a base year effect from that poor 2021 are suspected reasons for the growth witnessed in Q2 2022.

Speaking of contribution, the agriculture sector comfortably took the lead as it contributed 23.24% to the country’s GDP. However, while the sector contributes a lot to the nation’s productivity, growth in the sector has been stifled by heightened insecurity in the country. For context, while the agriculture sector managed to grow by 1.20%, it is a weaker increase compared to the 3.16% growth recorded in the preceding quarter.

Also, other sectors like telecommunications (18.44%), trade (16.81%), manufacturing (8.65%), mining & quarrying (6.51%), and real estate services (5.33%) were major contributors to the Nigerian GDP in the reference period.

MTN To Launch 5G Network In 7 States In Nigeria

Modern technology is expected to expand the size and capacity of MTN Nigeria's data network in Nigeria, enabling significantly faster speeds and reducing latency, giving consumers almost immediate access to the things they care about and downloads that take seconds rather than minutes.

MTN Nigeria Communications Plc stated that an open 5G pilot has started in advance of its eagerly awaited commercial rollout in seven states. The corporation stated that the initial rollout would occur in the states of Lagos, Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri.

As digital payments increase, Google Wallet debuts in South Africa

In an effort to establish a presence in South Africa's fast-expanding digital payments market, Alphabet Inc. launched Google Wallet there on Tuesday.

By touching their phone against the point of sale at the checkout counter of a store, customers may pay for items using the Google Wallet app, which maintains the details of their credit or debit cards.

According to Google, the following cardholders will be able to link their cards to Google Wallet starting on Tuesday: FirstRand Bank, Discovery Bank, Investec, Standard Bank, ABSA, and Nedbank.

They will subsequently be able to make purchases using their Android phones or other OS-compatible devices that support contactless payments.

U.K. Energy Regulator Ofgem Raises Household Price Cap Sharply Again

According to Ofgem, the price cap for the usual annual dual fuel tariff will increase from 1,971 pounds to 3,549 pounds on October 1st. That's around three times what British customers paid a year ago, and regional and demand-related variances may result in some households paying considerably more.

After the national energy market regulator Ofgem raised its price cap sharply higher again, U.K. households will see an increase in their electricity and gas bills of about 80% starting in October.

South Africa asides from its rich culture, beach getaways and amapiano; SouthAfrica is the third most bio-diverse region in the world.  With over 90,000 known species and some of the highest records of Endemism in the World, South Africa has some of the richest wildlife and Fauna in the world and making it a hot spot for tourists and researchers from around the globe.

South Africa is also a part of the Rio Convention on Biological Diversity, declaring a number of protected areas including National Parks, and Marine Protected Areas.

Game of Thrones: House of the dragon (2022)

The Prequel to the 9-season Game of Thrones franchise that netted an average of 285 million USD in each season, has kicked off with 2 Episodes released on HBO.

For the movie nerds that have read the books and watched the series at least twice, there were mixed feelings around the final season of GOT; but could the House of Dragons soar above Expectations?

Already House of Dragon hits the ground running with over 10 million views on its Premiere, and frankly, there are high expectations for the Prequel as Viewers are drawn back into the Lore of Westeros and Fires that forged the Iron Throne.

We expect to see the rise of our favourite Lannisters and the Baratheons.  Subscribe to HBO Max and welcome back to the Game of Thrones.

“You may have to fight a battle more than once to win it” 

The Nigerian GDP turned positive returns amidst Economic headwinds, even as Oil production takes a beating and GDP growth slows

Most read articles

Issue #78: Nigeria’s exported goods were worth N7.4 trillion in Q2 2022, the highest on record

Finance x TEch: RPA and how it is changing the nature of business

The Emergence of Liz Truss: Key to Saving the UK’s Economy?

Finance x TEch: 5 ways big data shapes the digital Economy

Issue #77: Non-oil keeps GDP afloat as the Oil giant lags in Y-o-Y production