Experts urge regulators, brokers to deepen insurance penetration

The industry experts have called on the National Insurance Commission (NAICOM) to work closely with the Association of Registered Insurance Agents of Nigeria (ARIAN) to raise the number of licensed agents from the current 50,000 to 300,000, to increase the sector penetration from less than one per cent.

The industry experts, who spoke to The Guardian at the weekend, said insurance agents play a vital role in developing the insurance value chain and act as catalysts for the sector’s growth.

Speaking specifically on the development, the former Chief Executive of FSL Insurance Limited, Alfred Daudu, said insurance awareness is not enough in the country and the only way to do this is by engaging licensing more insurance agents that would go to the doorsteps of Nigerians, particularly parents and guidance that has children in tertiary institutions.

Daudu said that the extent to which a country’s markets participate in insurance shows the extent to which such markets can accept insurance as both a strategy for risk reduction and a source of investment.

A low insurance market penetration rate indicates a slower economic expansion rate.

Citing the ongoing worse economic situation in the country, Daudu observed that it would be hard for some parents to send their children to tertiary institutions if no accurate preparations were made

While urging parents to plan their children’s education when young, especially with Nigeria’s reforms in policy underwriting, he argued that there is a need for a renewed campaign for insurance to be extended to schools and other institutions, especially at the grassroots.

This follows the introduction of the education endowment plan by some of the underwriting firms in the sector so that parents and guardians can adopt a long-term strategy for investing in the educational future of their youths.

The President of ARIAN, Odewunmi Olakunle, while speaking to The Guardian on the development in the industry, observed that a strong agency system in insurance remained the solution for deepening penetration.

He expressed the hope that since change is the only constant thing in life and now technology is taking over business dealings across the world, insurance agents must also embrace the change.

According to him, insurance agents are the middlemen between policyholders and insurance operators, he urged other marketers to embrace ICT platforms in the sale of insurance products and services for better and faster service delivery to policyholders across the country.

He also noted that ARIAN is working with the Nigerian Insurers Association (NIA) to blacklist any agent who engages in fraudulent practices, stressing that the bodies are working to ensure that such individuals do not get employment in the industry.

A policyholder of the top insurance company, Mrs Yemisi Adetayo, who also spoke to the issue in the market, wants insurance agents to take advantage of the social media platforms to reach out to the uninsured in the country.

Adetayo stressed that technology would help make insurance agents more relevant while increasing the yearly premium income of the industry as well as improving service delivery.

While urging agents to assist their respective underwriting firms to initiate easy ways of paying premiums and settling claims, she stated that digital technology has helped to transform business practices.