Role of artificial intelligence in streamlining life insurance processes

Artificial intelligence (AI) is transforming industries worldwide, and the insurance sector is no exception.

Traditionally known for lengthy and manual processes, the industry is now embracing AI to enhance efficiency, improve customer experiences, and streamline operations.

A prime example is underwriting—the process of assessing risk and determining policy costs.

In Tanzania, this has historically been labour-intensive, relying on manual data analysis and paperwork. AI automates data collection and analysis, making underwriting faster and more accurate.

Machine learning models predict risk with greater precision, enabling competitive pricing and personalized coverage. AI-driven underwriting also reduces onboarding time, allowing customers to receive decisions within minutes instead of weeks.

Beyond underwriting, AI is revolutionizing claims processing, a historically time-consuming task requiring extensive paperwork and multiple approvals.

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AI automates data extraction, verification, and analysis, cross-referencing claims with policy details and historical data. This speeds up approvals while reducing human error and inconsistencies. AI also strengthens fraud detection by identifying suspicious patterns, enhancing security across the insurance sector.

Fraud remains a major challenge in the financial services sector. A recent Bank of Tanzania (BoT) report highlighted how financial institutions are leveraging AI to detect fraudulent transactions.
Similarly, AI-powered fraud detection in insurance strengthens the industry’s ability to protect policyholders while maintaining trust and efficiency.

For instance, at Jubilee Insurance, digital transformation agenda is focused on optimizing processes to maximize customer value. Integrating AI into company’s systems has enhanced service delivery, ensuring that customers benefit from faster, more accurate, and reliable insurance solutions.

Looking ahead, insurers must continue embracing AI-driven advancements to remain competitive. AI is transforming underwriting, claims processing, customer service, and fraud prevention, helping insurers address market challenges and achieve sustainable growth.

By leveraging AI, insurance companies can improve efficiency, enhance service quality, and stay responsive to the evolving customer needs in an increasingly digital landscape.