Artificial Intelligence as a Catalyst for Transforming Third-Party Motor Insurance in Nigeria: Opportunities, Challenges, and Strategic Pathways

Abstract

This study examines how Artificial Intelligence (AI) is transforming third-party motor insurance in Nigeria. By combining surveys and regression analysis, it examines how AI tools such as machine learning, natural language processing, and predictive analytics can improve underwriting accuracy, detect fraud, speed up claim processing, and enhance the customer experience. The findings indicate that AI can significantly boost operational performance, though challenges include infrastructure gaps, unclear regulations, high costs, and a lack of technical skills. The study provides practical recommendations for insurers, regulators, and tech providers, adding valuable insights to the insurtech field and aiding digital transformation efforts in emerging markets.