Digitisation and Innovation in African Insurance 

Gary Tessendorf, the Country Manager for Africa at Sapiens. 

We are experiencing the rapid digitisation of the insurance sector in Africa and a growing demand for new technologies. This presents exciting opportunities for both Sapiens and the broader market. 

When we arrived in Africa eight years ago, we had a couple of key select customers in the region. We have grown significantly since then, and Sapiens, with its 5,500 employees and 600 insurance customers worldwide, has seen remarkable success in Africa, expanding its reach across the continent and building a strong local presence. 

This expansion has been driven by a deep understanding of the unique challenges and opportunities within the African insurance market. We work with a broad spectrum of clients, ranging from bank insurance and funeral policies to short-term insurance. This diversity speaks to the company’s ability to adapt its solutions to meet the specific needs of different sectors within the insurance industry. 

One of the key themes of the conversation was the changing attitude towards technology adoption within the insurance industry. Several years ago, the conversation around digitisation was very much a “push” effort, with companies needing to be persuaded of the benefits of new technologies. However, in recent years, this dynamic has shifted. 

Customers are now aware of what they are trying to do. They are aware of the pressures, the market dynamics, and the new tooling that is out there. This increased awareness has led to a more collaborative approach, with Sapiens working closely with its clients, whom we like to see as pertners, to implement technology solutions that are aligned with their strategic goals. 

This shift is evident in the way we engage with our clients. With a strong local support team and deep international experience, Sapiens brings a blend of global expertise and local knowledge to its projects. We have found a lot of really good partners, and have built close relationships with key players in the African insurance market. 

The Role of AI in Insurance – Looking to the future of technology in insurance, AI emerges as a central topic. Sapiens is at the forefront of integrating AI into its platforms, thanks in part to its partnership with Microsoft. This collaboration is enabling Sapiens to leverage cutting-edge AI technologies and bring them to the African market. 

I am super exited about the potential of AI to transform the insurance industry. We are all trying to understand what this AI concept is going to do, how it is going to impact us. The partnership with Microsoft, a global leader in AI, positions Sapiens to be a key player in this transformation. Being able to leverage AI down into our platforms and bring that into South Africa to our existing customers, the sky is the limit. 

I envision a future where AI could drastically simplify customer interactions, allowing clients to query their insurance policies in natural language and receive instant, accurate responses, is just the beginning of what AI can offer. The potential for AI to improve everything from claims processing to customer service is vast, and Sapiens is committed to exploring these possibilities. 

Exporting African Innovation – We should not discount the knowledge and expertise that Africa brings to the global stage. Sapiens’ South African team is not just a recipient of international knowledge but also contributes to global projects. About 20 to 30 percent of our team actually works on international programs, highlighting the mutual exchange of knowledge between South Africa and other markets. 

This exchange benefits both the local and international teams, allowing South African employees to gain global exposure and bring back best practices to improve the local market. It also demonstrates the high level of expertise present in Africa, which is increasingly being recognised on the global stage. 

There is a wealth of innovation happening in Africa, particularly as South African companies expand northward into the rest of the continent. This expansion is not just about exporting knowledge but also about learning from the unique innovations happening in other African countries. There is a growing demand for digital solutions across Africa, with countries like Kenya showing a strong interest in engaging with international vendors like Sapiens to drive their own digital transformations. 

While Sapiens has already made significant inroads into South Africa, we are now turning our attention to the broader African continent, which has the potential to become a key market for us. The market does need these solutions, owing to the increasing demand for digital insurance platforms in Africa. 

Sapiens is not just passively observing this trend, we are actively strategising expansion into new African markets. This includes bringing in local expertise and aligning with the needs of the market to deliver tailored solutions that drive growth. We are receiving a lot of interest from countries like Kenya, often initiated by the countries themselves, recognising the need for digital transformation in their insurance sectors.  

The African insurance market is dynamic and rapidly evolving. Sapiens, with its combination of global expertise and local knowledge, is well-positioned to lead this transformation. The shift towards digitisation, the integration of AI, and the growing exchange of knowledge between Africa and the rest of the world are all contributing to a vibrant and exciting future for the industry. 

As we continue to expand our footprint across Africa, we focus on not just being a vendor but a true partner to the insurance industry, helping African insurers navigate the challenges of digital transformation and harness the power of new technologies.