Gary Tessendorf, regional director: Sub-Saharan Africa, Sapiens
Artificial intelligence has moved beyond buzzword status in the insurance sector, it is actively reshaping how insurers operate, engage clients, and deliver value.
At Sapiens, we’ve been fortunate to be part of this transformation from the ground up, thanks to our global partnership with Microsoft and our continued investment in embedded AI across the insurance value chain.
From policy administration to underwriting and claims, we’re seeing AI not just as an add-on, but as a deeply integrated capability within core systems. And right here in South Africa, we’re partnering with forward-thinking insurers who are leveraging AI to drive operational efficiency, better risk decisions, and ultimately, better outcomes for their clients.
Bringing AI into the core – Our relationship with Microsoft has allowed us to be at the cutting edge of AI innovation, embedding tools directly into our product suite. This includes everything from life, wealth and retirement systems to short-term insurance platforms and digital engagement layers.
A good example is our newly adopted use of AI in data migration for the life, wealth and retirement space, often one of the most painful and complex aspects of any transformation. AI helps de-risk this process by understanding, interpreting, and cleansing vast amounts of data more effectively than traditional methods. In fact, one of our South African clients is now our global flagship for this capability, successfully migrating a significant legacy portfolio using AI.
But it doesn’t stop there. We’re enabling real-time underwriting with tools like our solution for Small Business Commercial Insurance . It brings the data brokers and agents need into one place, giving them a clear, 360-degree view of the customer from risk profiles to policy history. With embedded Gen AI capabilities, brokers and agents can make smarter, faster decisions, streamline quoting, and deliver a seamless, highly personalised experience. Imagine quoting a high-net-worth customer and the system instantly identifies opportunities for tailored pricing, discounts, or exclusions, all driven by local and international data sets, and surfaced in real time. It’s all about empowering your teams with the right insights, right when they need them.
Understanding the local market – South Africa’s insurance ecosystem is diverse. We’re seeing two main types of digital transformation conversations right now. One is the large-scale legacy transformation where insurers have realised, they can no longer stretch old systems. They need the foundational platforms to enable AI, real-time analytics, and digital customer experiences. The other is more agile, modular experimentation, smaller deployments to test capabilities, iterate fast, and decide whether to scale.
Both paths are valid and often coexist within a single business. Regardless of the path, one constant remains: the need for clean, structured, usable data. Good data is the foundation of effective AI. That’s why many of our initial engagements with clients focus on data health, readiness, and fit-for-purpose structuring.
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Playing with purpose – One of the exciting things we’re witnessing locally is the willingness of insurers to experiment. It’s not uncommon to see teams exploring AI use cases in the back office, automating repetitive tasks, surfacing insights, and improving processes, all while legal, compliance, and executive oversight are fully engaged.
This experimental mindset is crucial. It allows insurers to explore how AI can be used responsibly, ethically, and effectively. And because our tools come with embedded guardrails and have been trained on global datasets, we’re able to help clients localise solutions quickly, without starting from scratch.
What’s equally important is that South African insurers are not using AI as a tool for headcount reduction. In every engagement, the focus has been on optimisation, faster processing, better service, improved decision-making, not downsizing. That’s something we’re proud to be part of.
Solving real problems – Every successful AI deployment starts with identifying a real, high-impact use case. For some insurers, that’s improving underwriting accuracy; for others, it’s streamlining claims or enhancing broker tools.
One client came back to us after a single workshop with 14 immediate use cases, just scratching the surface of what’s possible. Another is using generative AI to scrape competitor quotes and offer next-best-product suggestions in real time.
This isn’t theory, it’s happening now. And as budgets for AI become more structured, we’re seeing more comprehensive roadmaps emerge, especially in areas like intelligent document processing, fraud detection, and dynamic pricing.
Closing the skills gap – While we’re seeing incredible momentum, there’s no denying that the local AI talent pool is still developing. South Africa has some brilliant minds in this space, but not yet enough to meet demand. That’s why many of our clients are tapping into Sapiens’ global AI teams to augment their local capabilities and speed up delivery.
This is a huge opportunity for the next generation of tech professionals. AI in insurance is going to be one of the biggest areas of growth over the next five to ten years. Universities, training institutions, and insurers alike need to prepare for that reality.
Why events like AIE matter – For us, the African Insurance Exchange (AIE) is more than just a conference, it’s a flagship event. We’re proud to co-sponsor the gala dinner this year and to host conversations that matter. It’s one of the rare events where attendees are truly present and engaged from start to finish.
Some of our most successful partnerships started at AIE. It’s where ideas are exchanged, relationships are built, and strategies are shaped, away from the noise of the everyday. And of course, the informal networking over a drink or a game of golf never hurts.
The pace of change in insurance is accelerating, not just evolving. AI is not a distant horizon; it’s a present-day differentiator. At Sapiens, we’re committed to helping insurers harness its full potential, with the right tools, the right guidance, and the right outcomes.
As we continue to work with leading insurers across South Africa and Sub-Saharan Africa, one thing is clear: the future is intelligent, and it’s already begun.