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Fix the foundations before scaling AI

As AI adoption accelerates across African insurance markets, many insurers risk scaling innovation on fragile foundations. This article argues that sustainable AI success depends on modernising core systems first, enabling clean data, flexible integration and disciplined, value-driven use cases.
Written by
Leslie Muthen
Published on
February 13, 2026
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Across Africa’s insurance markets, technology conversations have shifted decisively over the past year. What was once a debate about whether to modernise core systems has become a question of how quickly insurers can do so without introducing new risk or operational fragility. Legacy platforms, once viewed as dependable backbones, are increasingly seen as strategic constraints in a market that is moving faster than ever.

What is striking about the current moment is the scale of change expected over a relatively short period. Artificial intelligence adoption across Africa is still low, often estimated at around one percent in live, production environments, yet forecasts suggest this could rise to as much as 80 percent of financial services operations making use of AI-enabled tools within five years. That gap tells a story. It is not a lack of interest or ambition holding insurers back, but the reality that many organisations are trying to build advanced digital capabilities on foundations that were never designed for them.

Legacy systems remain deeply embedded in African insurers. They process premiums, administer policies and handle claims reliably, but they also lock information into silos, increase operational cost and make change slow and expensive. Every regulatory update, new product or distribution partnership becomes a technology project rather than a business decision. Over time, this erodes competitiveness and limits an insurer’s ability to respond to new risks, partners and customer expectations.

The real leadership challenge, therefore, is not about buying the latest technology. It is about building businesses that can compete sustainably over the long term. That starts with acknowledging that modernisation is a journey, not an event. The idea of ripping out core systems and replacing them in one dramatic programme is neither realistic nor necessary for most insurers on the continent.

A phased approach to modernisation has become essential. Insurers need to move away from brittle, tightly coupled systems towards connected digital environments that allow components to evolve independently. Cloud-based, API-driven platforms make this possible. They allow insurers to introduce new products, integrate distribution partners or respond to regulatory change without destabilising the core. This approach reduces risk and begins unlocking value far earlier than traditional transformation programmes allow.

This foundation is also what makes meaningful AI adoption possible. There is little value in experimenting with artificial intelligence if data is inaccessible, inconsistent or poorly governed. Once core platforms are modernised and data flows more freely across the organisation, insurers can begin to focus on use cases that genuinely add value rather than isolated experiments.

“Artificial intelligence will amplify whatever foundations are in place, strong or weak.”

Leslie Muthen
Territory Head for Africa at SSP Limited

Discipline

This is where discipline matters. Experience shows that only a fraction of AI ideas ever make it into production. For smaller insurers and underwriting managers in particular, investing in technology without a clear business case is not an option. Successful programmes tend to focus on a small number of high-impact use cases, with clear ownership, measurable outcomes and close alignment between business and technology teams.

The good news is that AI in insurance has already moved well beyond basic chatbots. Advanced models can reason, understand context and support more empathetic customer interactions. In underwriting and claims, this is beginning to translate into tangible results, including dramatic reductions in processing times and manual effort. These gains are real, but they are only achievable when organisations are technically and operationally ready to absorb them.

Africa’s diversity adds another layer of complexity. South Africa remains a relatively mature market, with strong regulation, advanced analytics and high expectations around customer experience. East Africa, by contrast, is distinctly mobile-first, with rapid growth in microinsurance, digital health platforms and mobile underwriting. West African markets face different challenges, including climate-related agricultural risks and highly diverse customer segments. Across all regions, insurers are contending with regulatory change, rising climate exposure and a young, digital population reshaping how insurance is bought and experienced.

Diversity

For technology providers operating across the continent, this diversity reinforces the importance of strong, configurable cores rather than highly customised systems. A robust core platform, combined with a flexible customer and integration layer, allows insurers to adapt to local market needs without fragmenting their technology landscape or increasing long-term complexity.

Skills will be just as important as software in the years ahead. As technology accelerates, competitive advantage will increasingly come from people who can bridge disciplines. Data science combined with actuarial expertise, AI and automation specialists, integration and API experts, and digital product designers will all be in high demand. As more routine development work is automated, these roles will define how effectively insurers turn technology into better products and experiences.

Crucially, this opportunity is not limited to large insurers. Cloud-based software-as-a-service platforms are lowering barriers to entry, giving smaller insurers, underwriting managers and brokers access to advanced capabilities that were previously out of reach. By automating administrative tasks and connecting into broader ecosystems, these organisations can focus more of their energy on customer service, innovation and growth.

At SSP Worldwide, we see this moment as a pivotal one for African insurance. The insurers that succeed will be those who resist the temptation to chase technology trends for their own sake, and instead invest deliberately in AI-ready foundations. Artificial intelligence will amplify whatever foundations are in place, strong or weak.

With the right strategy, partners and skills, legacy systems can move from being a drag on progress to a platform for scale and innovation across the continent.

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