JEFMS Journal

ABSTRACT:

Insurance industry provides insurance protection/financial guarantee to the insuring public in a given economy say Nigeria. The existence of risk allowed impetus for the insurance industry. Firms, governments and households act in ways that mitigate the adverse effects of risks on their assets, operations and social responsibilities. Insurance contracts are among the risk management choices of the persons exposed to risks. In Nigeria, the insurance industry is not too popular and needs to build trust and confidence among the insuring public. Information and Communication technology innovations that are changing the manner of doing things have potentials of facilitating, boasting trust and keeping insurance industry relevant. These can be realized via efficient insurance service delivery and innovations. This study using scooping approach aims at examining the level of information and communication technology (ICT) applications in Nigeria insurance industry, and promoting the ICTs in the industry. The study while identifying favourable demography and sustained innovations in ICT in Nigeria recommends sustained interest of the stakeholders towards adoption of ICT in Nigeria insurance industry.

Keywords-

Information, Communication, Technology, E-insurance, Financial technology.

References-

1) Abbott, R., &Bogenschneider, B. (2018). Should robots pay taxes: Tax policy in the age of automation?Harv. L. &Pol'y Rev., 12, 145.

2) Accad, M. (2009). The future of electronic banking in Nigeria. The role of the internet, US embossing sponsored e-week 2009.

3) Adeyele, J. S.&Maiturare, M. N. (2012). Repositioning the Nigerian insurance industry for sustainable development: Risk management perspective. European Journal of Business and Management, 4(5), 22-30.

4) Ambarkhane, D., Singh, A. S. & Venkataramani, B. (2016). Measuring financial inclusion of Indian states. International Journal of Rural Management, 12(1), 72-100.

5) Ampaw, E. M., Chai, J., & Frempong, J. (2019). Examining the overarching factors of clients’ loyalty based on the mobile insurance typology. South African Journal of Business Management, 50(1), 1-14.

6) Apulu, I., Latham, A., & Moreton, R. (2011). Factors affecting the effective utilisation and adoption of sophisticated ICT solutions: Case studies of SMEs in Lagos, Nigeria. Journal of Systems and Information Technology.

7) Arumugam, S. & Bhargavi, R. (2019). A survey on driving behaviouranalysis in usage based insurance using big data. Journal of Big Data, 6(1), 1-21.

8) Ayuso, M., Guillen, M. & Marín, A. M. P. (2016). Using GPS data to analyse the distance travelled to the first accident at fault in pay-as-you-drive insurance. Transportation research part C: emerging technologies, 68, 160-167.

9) Baecker, O. & Bereuter, A. (2010). Technology-Based Industrialization of Claims Management in Motor Insurance. MultikonferenzWirtschaftsinformatik 2010, 373.

10) Bapat, F. A. & Bapat, S. P. (2010). Development and testing of an efficient artificial neural network algorithm and its effectiveness for prediction of insurance claims. International Journal of Innovation, Management and Technology, 1(3), 286.

11) Beerbaum, D. (2019). Artificial Intelligence Ethics Taxonomy-Robotic Process Automation (RPA) as business case. Journal of Applied Research in the Digital Economy (JADE).

12) Bian, Y., Yang, C., Zhao, J. L. & Liang, L. (2018). Good drivers pay less: A study of usage-based vehicle insurance models. Transportation research part A: policy and practice, 107, 20-34.

13) Blissinga, T. E. & McIntyreb, J. (2017). Adoption of Big Data in the Southeast Asian (SEA) insurance industry: An organizational change perspective. Knowing Enough to Be Dangerous: The Dark Side of Empowering Employees with Data and Tools, 113.

14) Braunwarth, K. S., Kaiser, M. & Müller, A. L. (2010). Economic evaluation and optimization of the degree of automation in insurance processes. Business & Information Systems Engineering, 2(1), 29-39.

15) Britannica Encyclopaedia (2009). http://www.britannica.com/ebchecked/topic/217591/fraud. Retrieved April 01,2021.

16) Central Bank of Nigeria (2010). Financial System Strategy 2020. Retrieved 17 April 2021, from https://www.cbn.gov.ng/fss/mon/Nigeria%27s%20Financial%20System%20Strategy%202020%20Plan%20- %20OUR%20DREAM_Prof.%20Soludo.pdf

17) Central Bank of Nigeria (2019). National Financial inclusion strategy (Revised).Abuja: Central Bank of Nigeria Publication.

18) Chakravaram, V., Jangirala, S. & Ratnakaram, S. (2020). Use of ICTs in financial engineering applications in insurance business. In ICT Analysis and Applications (pp. 273-283). Springer, Singapore.

19) Chichernea, V. (2010). The Electronic Signature (E-Sign) in the Information Society. Journal of Information Systems & Operations Management, 4(1), 76-83.

20) Chrissanthis, C. S. (2016). Online sales of insurance products in the EU. In “the Dematerialized" Insurance (pp. 143-167). Springer, Cham

21) Clemente, G. P. & Marano, P. (2020). The broker model for peer-to-peer insurance: an analysis of its value. The Geneva Papers on Risk and Insurance-Issues and Practice, 45, 457-481.

22) Davis, J. (2018). Peer to peer insurance on an Ethereumblockchain. Dynamis Whitepaper. Retrieved February 18th f.

23) Desyllas, P. & Sako, M. (2013). Profiting from business model innovation: Evidence from Pay-As-You-Drive auto insurance. Research Policy, 42(1), 101-116.

24) Dionne, G., Michaud, P. C. & Dahchour, M. (2013). Separating moral hazard from adverse selection and learning in automobile insurance: longitudinal evidence from France. Journal of the European Economic Association, 11(4), 897-917.

25) Denuit, M. (2020). Investing in your own and peers’ risks: the simple analytics of P2P insurance. European Actuarial Journal, 10, 335-359

26) Fadun, O. S. (2013). Information and communication technology (ict) and insurance companies profitability in Nigeria. Journal of Accounting, Business and Management (JABM), 20(2).

27) Følstad, A. & Skjuve, M. (2019, August). Chatbots for customer service: user experience and motivation. In Proceedings of the 1st international conference on conversational user interfaces (pp. 1-9).

28) Guillen, M., Nielsen, J. P., Ayuso, M. & Pérez‐Marín, A. M. (2019). The use of telematics devices to improve automobile insurance rates. Risk analysis, 39(3), 662-672.

29) Handel, P., Skog, I., Wahlstrom, J., Bonawiede, F., Welch, R., Ohlsson, J. & Ohlsson, M. (2014). Insurance telematics: Opportunities and challenges with the smartphone solution. IEEE Intelligent Transportation Systems Magazine, 6(4), 57- 70.

30) Hazell, P., Anderson, J., Balzer, N., HastrupClemmensen, A., Hess, U. & Rispoli, F. (2010). The potential for scale and sustainability in weather index insurance for agriculture and rural livelihoods. World Food Programme (WFP).

31) Hofman, A., Aravena, C. & Aliaga, V. (2016). Information and communication technologies and their impact in the economic growth of Latin America, 1990–2013. Telecommunications Policy, 40(5), 485-501.

32) Hoque, S. M., & Alam, S. M. (2010). The role of information and communication technologies (ICTs) in delivering higher education–A case of Bangladesh. International Education Studies, 3(2).

33) Husnjak, S., Peraković, D., Forenbacher, I. & Mumdziev, M. (2015). Telematics system in usage based motor insurance. Procedia Engineering, 100, 816-825.

34) James, J. & Short, K. (2004)) IT in the 1990s: Managing Organizational Interdependence.

35) Sloan Management Review15(2)7-17.

36) Khidzir, N. Z., Mohamed, A.& Arshad, N. H. (2010, March). Information security risk factors: Critical threats vulnerabilities in ICT outsourcing. In 2010 International Conference on Information Retrieval & Knowledge Management (CAMP) (pp. 194-199). IEEE.

37) Kpodar, K.&Andrianaivo, M. (2011). ICT, financial inclusion, and growth evidence from African countries. IMF Working Papers, 1-45.

38) Ladokun, I. O., Osunwole, O. O. & Olaoye, B. O. (2013). Information and Communication Technology in Small and Medium Enterprises: Factors affecting the Adoption and use of ICT in Nigeria. International Journal of Academic Research in Economics and Management Sciences, 2(6), 74.

39) Lawrence C., Oivo M. (2012). Cultural Challenges in Information Systems Innovation: The Need for Differentiation Studies. In: Bhattacherjee A., Fitzgerald B. (eds) Shaping the Future of ICT Research. Methods and Approaches. IFIP Advances in Information and Communication Technology, (389). Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642- 35142-6_12

40) Leach, J. & Ncube, S. (2014). Regulating M-insurance in Zimbabwe: Managing risk while facilitating innovation. Financial Markefing Trust.

41) Longley, D., Shain, M. Caeli, W. (1992). Information Security: Dictionary of Concepts, Standards and Terms. UK: Palgrave Macmillan.

42) Loukis, E., Janssen, M., Dawes, S.& Zheng, L. (2016). Evolving ICT and governance in organizational networks-Conceptual and theoretical foundations. Electronic Markets, 26(1), 7-14.

43) Maas, P. (2010). How insurance brokers create value: A functional approach. Risk Management and Insurance Review, 13(1), 1-20.

44) Machine learning - Automation of Claim Processing | TheActuary.Net. (2018). Retrieved 13 April 2021, from http://theactuary.net/machine-learning-automation-of-claim-processing/

45) Maher, B. & McCaffrey, M. (2018). Weather Index Based Insurance for the Pacific. ICT Update.

46) Mahlow, N. & Wagner, J. (2016). Evolution of strategic levers in insurance claims management: an industry survey. Risk Management and Insurance Review, 19(2), 197-223.

47) Majtánová, A. & Brokešová, Z. (2012). Financial services marketing in the era of online social network sites: The case of Insurance Marketing. Ekonomskamisaoipraksa, (1), 45-66.

48) Martinez, C. A. & Williams, C. (2010). National Institutions, Entrepreneurship and Global ICT Adoption: A Cross-Country Test of Competing Theories. Journal of Electronic Commerce Research, 11(1).

49) Mohammed, A. H. & Mukhtar, S. (2012). The prospects of micro-insurance in the rural areas of Nigeria. European Scientific Journal, 8 (3), 66, 76.

50) Ngai, E. W., Hu, Y., Wong, Y. H., Chen, Y.& Sun, X. (2011). The application of data mining techniques in financial fraud detection: A classification framework and an academic review of literature. Decision Support Systems, 50(3), 559-569.

51) Nicholson, J. E. (2019). Challenges for the Insurance Industry in the Future. Journal of Insurance Regulation, 38(6).

52) Njatrijani, R. & Prananda, R. (2020). Risk and Performance in Technology Service Platform Of Online Peer-To-Peer (P2P) Mode. International Journal of Scientific & Technology Research 9(03), 5404-5406.

53) Njoh, A. J. (2018). The relationship between modern information and communications technologies (ICTs) and development in Africa. Utilities Policy, 50, 83-90.

54) Nwala, M. N., Abubakar, I. A. & Onibiyo, E. R. (2020). Effect of Investment in Information and Communication Technology on Financial Performance of Listed Insurance Companies in Nigeria. Journal of Economics and Allied Research, 4(3), 125 – 138.

55) Obadha, M., Colbourn, T., & Seal, A. (2020). Mobile money use and social health insurance enrolment among rural dwellers outside the formal employment sector: Evidence from Kenya. The International Journal of Health Planning and Management, 35(1), e66-e80.

56) Obutte, P. C. (2014). ICT laws in Nigeria: planning and regulating a societal journey into the future. Potchefstroom Electronic Law Journal/PotchefstroomseElektronieseRegsblad, 17(1), 419-451.

57) Odoyo, F. S. & Nyangosi, R. (2011). E-insurance: An empirical study of perceived benefits. International Journal of Business and Social Science,2 (21), 166-171.

58) Oghogho, I. (2013). ICT for national development in Nigeria: Creating an enabling environment. International Journal of Engineering and Applied Sciences, 3(2), 59-66.

59) Okonkwo, I. V. (2012). Introduction to insurance: A Nigerian perspective (Revised). Enugu: Hosanna Publication.

60) Okonkwo, I. V. & Okeke, D. (2019). Developments and innovations in Nigerian insurance industry: 2010-2018. International Journal of Research in Business, Economics and Management, 3(1) 105-121.

61) Okonkwo, I. V. & Okechukwu, S. T. (2021). Insurance Business and Information Communication Technology in Nigeria: Matters Arising. Governance and professionalism in the 21st Century Accountants blueprint. A Festschrift for Rev Canon Professor Benjamin ChukaOsisioma. Faculty of Management Sciences, NnamdiAzikiwe University Awka.

62) Onyeajuwa, M. K. (2017). Institutions and consumers: Assertion of ordinary consumer interest in the Nigerian digital mobile telecommunications market. Telecommunications Policy, 41(7-8), 642-650.

63) Østergaard, C. R., Timmermans, B. &Kristinsson, K. (2011). Does a different view create something new? The effect of employee diversity on innovation. Research policy, 40(3), 500-509.

64) Persianas Group. (2021). Overview of Nigeria | Persianas Group. Retrieved 17 April 2021, from http://www.persianasgroup.com/the-market/overview-of-nigeria/

65) Peters, M. D., Godfrey, C. M., Khalil, H., McInerney, P., Parker, D. & Soares, C. B. (2015). Guidance for conducting systematic scoping reviews. JBI Evidence Implementation, 13(3), 141-146.

66) Rawte, V. & Anuradha, G. (2015, January). Fraud detection in health insurance using data mining techniques. In 2015 International Conference on Communication, Information & Computing Technology (ICCICT) (pp. 1-5). IEEE.

67) Rego, M. L. & Carvalho, J. C. (2020). Insurance in Today’s Sharing Economy: New Challenges Ahead or a Return to the Origins of Insurance? In InsurTech: A Legal and Regulatory View (pp. 27-47). Springer, Cham.

68) Riikkinen, M., Saarijärvi, H., Sarlin, P.&Lähteenmäki, I. (2018). Using artificial intelligence to create value in insurance. International Journal of Bank Marketing.

69) Rokas, I. (2016). European and International Online Distribution of Insurance Products. In The "Dematerialized" Insurance (pp. 3-37). Springer, Cham.

70) Riikkinen, M., Saarijärvi, H., Sarlin, P. & Lähteenmäki, I. (2018). Using artificial intelligence to create value in insurance. International Journal of Bank Marketing.

71) Sajuyigbe, A. S. & Alabi, E., (2012). Impact of information and Communication Technology inselected Small and Medium Enterprises in Osogbo metropolis, Nigeria. Journal of School of Communication and Information Technology, Federal Polytechnic, Offa 3(1), 183 -188.

72) Sapa, S. G., Phunde, S. B., & Godbole, M. R. (2014). Impacts of ICT Application on the Insurance Sector (e-Insurance). IBMRD's Journal of Management & Research, 3(1), 311-320.

73) Shift Technology. (2021). Fraud Detection and Claims Automation | Shift Technology. Retrieved 20 April 2021, from https://www.shift-technology.com/

74) Srivastava, A. & Kaur, R. (2015). Chat Box: computer program on android which converses with humans.

75) Tadesse, M. A., Shiferaw, B. A. & Erenstein, O. (2015). Weather index insurance for managing drought risk in smallholder agriculture: lessons and policy implications for sub-Saharan Africa. Agricultural and Food Economics, 3(1), 1-21.

76) Taeihagh, A. & Lim, H. S. M. (2019). Governing autonomous vehicles: emerging responses for safety, liability, privacy, cybersecurity, and industry risks. Transport Reviews, 39(1), 103-128.

77) Teare, G., & Taks, M. (2020). Extending the scoping review framework: a guide for interdisciplinary researchers. International Journal of Social Research Methodology, 23(3), 311-315.

78) Taylor, S. A., Celuch, K. & Goodwin, S. (2002). Technology readiness in the e-insurance industry: an exploratory investigation and development of an agent technology e-consumption model. Journal of Insurance Issues, 142-165.

79) The World Bank (2021). Nigeria: Overview. Retrieved 17 April 2021, from https://www.worldbank.org/en/country/nigeria/overview

80) Verma, A., Taneja, A. & Arora, A. (2017, August). Fraud detection and frequent pattern matching in insurance claims using data mining techniques. In 2017 Tenth International Conference on Contemporary Computing (IC3) (pp. 1-7). IEEE.

81) Wahlström, J., Skog, I. & Händel, P. (2017). Smartphone-based vehicle telematics: A ten-year anniversary. IEEE Transactions on Intelligent Transportation Systems, 18(10), 2802-2825.

82) Watteville, G. & Gilbert, V. (2000). Incorporation of intangibles in computerselection decisions.Journal of Systems Management33(1), 30-36.

83) Wayne, T., Soetan, T., Bajepade, G., & Mogaji, E. (2020). Technologies for Financial Inclusion in Nigeria. Research Agenda Working Papers, 2020(4), 40-56.

84) Weisburd, S. (2015). Identifying moral hazard in car insurance contracts. Review of Economics and Statistics, 97(2), 301- 313.

85) Whong, F. M., & Zakari, M. (2014). Application of Information and Communication Technologies (ICTs) to Library Operations and Routines in Selected Nigerian Federal University Libraries. Information Manager (The), 14(1-2), 29-37.

86) Witherspoon, D. J. (2015). The influence of ICT adoption on performance of micro insurancebusiness in Kenya. A research project submitted in partial fulfilment of therequirements for the award of the degree of Master of Business Administration, School of Business, University of Nairobi.

87) Woerd, J. V. D. (2018). Satellite data for agricultural index insurance. ICT Update.

88) Yadav, R. K. & Mohania, S. (2013). Claim Settlement of life insurance policies in insurance services with special reference to life insurance Corporation of India. Indian Journal of Economics and Development, 29(1), 29-37.

89) World Bank. (2011). Weather index insurance for agriculture: guidance for development practitioners. World Bank.

90) Zumstein, D., & Hundertmark, S. (2017). Chatbots--An Interactive Technology for Personalized Communication, Transactions and Services. IADIS International Journal on WWW/Internet, 15(1).