South African Insurers Implement AI Tools Despite Lack of National AI Policy

South African insurance providers are implementing artificial intelligence (AI) tools for their operations, despite the lack of a National AI Policy. The country’s Draft National AI Policy was withdrawn earlier this year after it referenced completely fictitious, AI-generated citations. The Department of Communications and Digital Technologies is still targeting the 2026/2027 financial year to finalise the AI policy. Insurers are formulating their own AI frameworks to tap into the technology.

KPMG South Africa’s annual KPMG South African Insurance Survey details how local insurers operate in an environment characterised by geopolitical conflicts, AI advancements, evolving cyber threats, and shifting customer expectations. The survey found that AI is being used for general efficiencies, such as writing documents and creating presentations, but not for actuarial valuations or finance processes.

Insurers are developing internal frameworks to manage risks related to data privacy and unauthorised data amendments, due to the lack of a National AI Policy. This will guide them in their use of AI and ensure that they adopt it responsibly.