Kwanele Sibanda | Why insight-driven decision-making is critical for insurance resilience

In an era defined by unpredictability, the global insurance industry is standing at a crossroads. From climate shocks and inflation to cyber threats and escalating regulatory demands, insurers face a risk landscape that is more complex than ever. A new Risk.net survey of more than 350 senior insurance executives, published in partnership with SAS, reveals a sector attempting to realign strategy, operations and technology - but often hamstrung by structural silos and inconsistent decision-making.

The report, Breaking Silos: Agile Insurance in an Uncertain World (November 2025), paints a picture of an industry determined to rise to the challenge, but constrained by outdated processes, fragmented data, and limited cross-functional awareness. For African insurers, these findings offer both a warning and a roadmap: future resilience will depend on integrated, insight-driven decisions across the enterprise.

The Pressures Are Mounting

Across all regions - including Africa - executives identified economic uncertainty, regulatory change, cost pressures, technology disruption, and shifting customer expectations as top challenges for the next decade. Climate change, meanwhile, continues to reshape risk exposures: wildfire and flood losses in Europe and North America are rising sharply, while in Asia-Pacific the rapid expansion of electric vehicles is changing motor insurance dynamics.

Life and health insurers cited rising healthcare costs, demographic shifts and intense regulatory scrutiny as key pressure points. Meanwhile, property and casualty carriers are contending with inflation-driven repair costs, extreme weather, and surging cyber risks.

These forces create a complex environment in which decisions in underwriting, claims, finance, technology and customer strategy cannot be made in isolation. Yet the research shows they often are.

Decision-Making Is Fragmented - And Sometimes Based on Instinct

One of the most concerning findings is the disconnect between strategic intent and operational execution:

• 38% of respondents did not agree - or were unsure - that their organisation’s structure, processes and technology were aligned with strategic goals.
• A similar proportion said they do not have a real-time, 360° view of risks, revenue and costs.
• In key decision areas such as claims management, up to 40% of decisions are still driven more by gut instinct than by analytics.
• Even where analytics are used, 31% of leaders across functions admitted they do not consider the impact of their decisions on other areas of the business.

This siloed approach increases the risk of mispricing, capital inefficiency, and poor customer outcomes.

As Francesco Nagari of Deloitte notes: “Without a common approach to reporting and analysing the growing amount of data now available, it may prove more challenging to make joined-up decisions.”

A Lack of Awareness - and Concern - About Decisions Made Elsewhere

Perhaps the most alarming statistic: just 46% of insurance leaders said they are “aware and concerned” about decisions made in other parts of the business that affect their own area.
A quarter admitted they are unaware of such decisions, and a further 38% said they were “aware but unconcerned.”

For an industry built on risk management, this internal blind spot is quite striking - and for African insurers, which often operate with leaner teams and more manual processes, the impact could be even more pronounced.

The Root Causes: Legacy Systems, Poor Data, and Culture

When asked what hinders robust decision-making, respondents pointed to a familiar set of barriers:

• Poor data quality
• Budget constraints
• Siloed processes and unclear ownership
• Outdated technology
• Risk-averse culture

Technology functions, in particular, cited budget constraints as a major blocker - highlighting the challenge of modernising core systems while keeping operational costs in check.

As one respondent put it: “It amazes me how many things I still have to physically sign, scan and send back. It just shows how antiquated the industry still is.”

The Way Forward: Connected, Analytics-Driven Insurance

Despite the challenges, the report however points to an optimistic and energised future vision. Insurance leaders increasingly recognise that AI, advanced analytics, cloud-native platforms and integrated data systems offer a path to faster, smarter and more aligned decision-making.

Where insurers plan to invest most in AI and analytics

Across the board, the top priority areas include:

• Underwriting, reserving and pricing
• Claims management and operations
• Customer acquisition and marketing
• Fraud detection
• Technology and data strategy

Real-world examples already illustrate the transformative potential:

• MetLife is using machine learning to refine segmentation and predict claims severity.
• AXA employs natural language processing to streamline compliance and product reviews.
• Munich Re uses AI-enhanced weather and satellite data to strengthen catastrophe modelling.
• Ping An integrates AI into health underwriting and digital medical services at massive scale.
• esure has automated 70% of underwriting decisions through rules engines updated daily from real-time claims insights.

For African insurers, many of whom have already leapfrogged into cloud-native systems and mobile-first customer models, these global case studies show what is possible. Despite all the perceived and real challenges, Africa has registered and continue to register a growing number of technology adoption and adaptation success cases.

In the last 5 years or so, Africa has experienced a significant shift in how its insurers (and leading regional players/insurtechs) see and interacts with data – that is, AI, advanced analytics, cloud-native platforms and integrated data systems - and these companies have effectively leapfrogged into cloud-native and mobile-first models.

Some of African Leaders in AI / advanced analytics / cloud & integrated data

Discovery Group (Discovery Insure) - South Africa

Why they lead: heavy use of telematics, integrated data across life/health/insure lines and a data-driven Vitality ecosystem that feeds analytics across pricing, underwriting and customer engagement. Discovery has published in-depth reporting on Vitality Drive telematics, and its integrated annual report documents the group’s data-led model and systems investments. 

Example/project: Vitality Drive telematics (award-winning devices and real-time driving analytics) and a group-level integrated reporting / digital strategy linking health, life and short-term products. 

Santam Insurance - South Africa

Why they lead: explicit investment in AI/chatbot automation and digital claims processing; public programmes to speed motor and household claims via digital channels. 

Example/project: Santam’s WhatsApp and AI chatbot initiatives to register and fast-track motor glass and geyser claims - an operational AI + digital channel rollout. 

Old Mutual - South Africa / regionally

Why they lead: clear corporate digital strategy, integrated digital solutions and mobile/WhatsApp channels referenced in its integrated reporting. Old Mutual has been building out digital distribution, servicing and analytics to connect customer and financial data. 

Example/project: Group digital solutions (apps, WhatsApp, web) supporting customer servicing and data capture used across product lines to enable analytics and automation. 

Sanlam (and SanlamAllianz initiatives) - South Africa / Africa partnerships

Why they lead: sustained digital transformation and investment in cloud/analytics noted in Sanlam reporting and partnerships (including collaboration with Allianz on African opportunities). Sanlam’s integrated reports and digital-skills content show ongoing cloud & data investments. 

Example/project: Group digital transformation initiatives and partnership activity (SanlamAllianz) that point to integrated data, analytics and cloud-first ways of working.

Hollard Insurance - South Africa (digital transformation partner projects)

Why they lead: well-documented digital initiatives and end-to-end platform builds (broker and direct channels) - they’ve worked on cloud-enabled digital quoting and issuance systems with technology partners. 

Example/project: End-to-end digital system development for marine broker quoting and client self-service (a cloud-capable, automated broker portal). 

Insurers that leapfrogged into cloud-native and mobile-first models

BIMA (mobile-first microinsurance) - pan-Africa (insurtech)

Why they leapfrogged: built from the ground up as a mobile-first distribution and product platform for low-income customers across multiple African markets (digital onboarding, mobile payments, telemedicine integrations). 

Example/project: Mobile-first life & health microinsurance distribution via partnerships with mobile operators (repeated rollouts across Ghana and other markets). 

MicroEnsure / MicroEnsure-partnered programmes - multiple African markets

Why they leapfrogged: early pioneer in bundling insurance to mobile airtime/top-ups and MNO partnerships (mobile microinsurance distribution at scale).

Example/project: Partnerships with Airtel/MTN-type operators to deliver pay-as-you-top microinsurance products (mobile registration + monthly cover tied to airtime). 

Regional incumbents with strong digital/cloud pushes

• AXA Mansard / AXA Africa (Nigeria and region): AXA’s African affiliates have published digital and mobile initiatives and an increasing focus on digital platforms and product innovation. 
• Various South African incumbents (Discovery, Santam, Old Mutual, Sanlam, Hollard): these groups have invested in cloud/analytics and digital channels (apps, chatbots, telematics) and explicitly call out automation and AI in their reports. 

What Future Winners Will Look Like

The Risk.net survey report identifies three critical enablers that will differentiate tomorrow’s leaders:

1. Integrated, real-time insight

Boards, business lines and technology teams must share a unified view of financial, customer and risk data.

2. A collaborative culture

Breaking organisational silos is not just a technological challenge, but a cultural one. Decision-makers must understand - and care about - the downstream impact of their choices.

3. AI at scale

Early experimentation must evolve into enterprise-wide AI adoption, from pricing and claims to marketing, fraud, compliance, and financial reporting.

As SAS’s Thorsten Hein notes: “Those who rely solely on historical data or traditional risk models - often hampered by internal silos- will struggle to keep up with this evolving landscape.”

Conclusion: The African Imperative

For African insurers - many operating in markets shaped by climate vulnerability, persistent economic shocks, and regulatory evolution - the insights from this study could not be more relevant.

From the report, the path to resilience lies in breaking down silos, investing in data quality, building cross-functional accountability, and scaling analytics and AI across the value chain.

In a world where risks are interconnected, the future belongs to those insurers that make decisions the same way: integrated, insight-driven, agile and connected.

**Kwanele Sibanda is the Founder and Editor-In-Chief of Insurance Biz Africa and Banking Biz Africa.