LLMs and Agentic AI in Insurance Decision-Making: Opportunities and Challenges For Africa

TL;DR

This paper explores how Large Language Models and agentic AI can transform the African insurance industry by identifying opportunities, challenges, and pathways for inclusive and sustainable AI-driven solutions.

Contribution

It highlights the unique opportunities and challenges of deploying LLMs and agentic AI in Africa's insurance sector and proposes collaborative strategies for local adoption.

Findings

Identifies key gaps in the African insurance market.

Highlights local efforts and partnership opportunities.

Emphasizes the need for inclusive AI strategies.

Abstract

In this work, we highlight the transformative potential of Artificial Intelligence (AI), particularly Large Language Models (LLMs) and agentic AI, in the insurance sector. We consider and emphasize the unique opportunities, challenges, and potential pathways in insurance amid rapid performance improvements, increased open-source access, decreasing deployment costs, and the complexity of LLM or agentic AI frameworks. To bring it closer to home, we identify critical gaps in the African insurance market and highlight key local efforts, players, and partnership opportunities. Finally, we call upon actuaries, insurers, regulators, and tech leaders to a collaborative effort aimed at creating inclusive, sustainable, and equitable AI strategies and solutions: by and for Africans.