Uganda: Adopt Ai or Risk Losing Business, Prof. Lawrence Muganga Tells Insurance Brokers

Vice Chancellor of Victoria University, Prof. Lawrence Muganga, urged insurance brokers in Uganda to swiftly adopt artificial intelligence (AI), warning that those who do not risk losing business to competitors who leverage the technology for faster work, reduced costs, and broader customer reach. Speaking at the monthly Insurance Brokers Association of Uganda (IBAU) CEO Breakfast Meeting, Prof. Muganga emphasized that AI should not be seen as a threat to jobs but rather as a tool that can handle repetitive administrative tasks, allowing professionals to concentrate on tasks requiring human judgment.

AI will not replace brokers, but those who master AI as brokers will likely disrupt their business, Muganga cautioned. He argued that the insurance industry has an opportunity to use AI to transform the handling of paperwork, quotations, renewals, reports, customer communication, and other repetitive processes. Insurers spend too much time on administrative tasks, leaving little time for professional advice and customer relationships, he noted. According to Muganga, 70% of a broker's time is consumed by such tasks.

Citing examples from the history of technology, Muganga challenged the cautious attitude towards new innovations. He highlighted the early skepticism surrounding the telephone, electric light, television, computers, and artificial intelligence, suggesting that once dismissed technologies eventually become part of everyday life. He also referenced the work of computer scientist Alan Turing and AI pioneer Geoffrey Hinton, who initially faced skepticism but later made significant contributions to the field.

Muganga encouraged CEOs to embrace AI beyond using it as a chatbot and explore AI assistants and automated systems that can handle multiple business processes. These AI systems can read and organize information, prepare reports, create presentations, monitor deadlines, and support research. He urged business leaders to think beyond the basic use of AI and learn how to automate repetitive tasks, increase efficiency, and explore new opportunities.

To begin, companies should identify their most repetitive and time-consuming processes and test whether AI can automate them. They should also consider hiring AI specialists, just as they hire plumbers, electricians, or IT professionals to solve specific problems. Muganga emphasized that companies could gain time and reduce operating costs by embracing AI, which could enable them to offer more accessible insurance products to customers, especially in an economy where insurance penetration remains low.

He also pointed out opportunities in microinsurance and the potential for technology to develop products tailored to underserved populations. The insurance industry often uses fear-based messaging, which can be uncomfortable for customers, particularly in cultures where discussions about death are sensitive. Muganga argued that the industry should find more appropriate ways to present insurance as a tool for financial protection, planning, and opportunity rather than relying heavily on fear.