Insurance is a financial tool designed to lessen impact of unexpected events, says Johnson

Ayodeji Johnson is the Chief Responsibility Officer of Go Risk Insurance Brokers Limited. In this interview with KENECHUKWU EZONYEJIAKU, , he  spoke on the economic and social benefits of insurance, its competitive advantage and other key contemporary industry issues. Excerpts

WHY is Insurance the “most misunderstood industry”? 

  The way insurance has been perceived has been due to a combination of factors. It is true to say that in the past the insurance industry has been a mystery to some. The economic and social benefits derived from insurance are huge and are often overlooked. One of our key responsibilities is working with the Professional Middle Class and Small to Mid-size businesses to remove the mystery. We take time to explain to our clients how they can utilize insurance as a financial tool to lessen the impact of unexpected events in their lives and businesses.

How do you think these misunderstandings have played out specifically with the various stakeholders — customers, insurance companies, governments, etc?

  The industry has worked assiduously to address these misunderstandings and those efforts are beginning to yield fruits. From our perspective, it is essential that our clients have a memorable experience and that is achieved through us employing an experienced and professional team of insurance practitioners. Actions speak louder than words and the positive impact created when we work to settle our clients’ claims promptly is a relieving for them. We aim to settle claim under some of our products within 7 days. 

As a new Insurance firm on the grind, armed with the dynamic and pattern the Nigerian Insurance industry operates, what is your strategy and competitive advantage to bridge the innovation, institutionalism, and contextualism divide?

  Clear strategies coupled with innovation are vital ingredients to our success. We see our competitive advantage as being our innovative range of products together with the fact that the products are affordable. By ensuring our products are rated at a level, which makes them affordable means, insurance becomes far more attractive and accessible breaking down some of the divides that may have existed.

There is a global focus on the Nigerian economy. As an Insurance expert, does this portend growth, development and sophistication for Nigeria’s Insurance industry?

  Nigeria is Africa’s largest economy. Despite the growth in our economy insurance penetration is still low but statistics from other countries show that will change. Our products have been designed to fit the areas where there is already a need for insurance protection among the Professional Middle Classes and Small to Mid-size business.

What is your vision at Go Risk Insurance Brokers Ltd?

  Go Risk is young and dynamic Insurance Broker. We are authorized and regulated by National Insurance Commission (NAICOM) and Nigerian Council of Registered Insurance Brokers (NCRIB). Go Risk is authorized to transact all classes of insurance with license no, RB728. Go Risk sees an increasing demand by clients for a professional, transparent and client-focused broker. Go Risk aims to introduce and promote insurance products that enhance and secure the lives of our private clients and mitigate the business and financial risks that our corporate and public-sector clients face. Go Risk searches the insurance market for the widest cover, best possible terms and competitive rates. 

Who are your target clients?

  Clients fall into 4 broad categories; namely, the Professional Middle Class; Small to Mid-size businesses; Niche Markets and Public Sector.  We have a long-term strategy in place to build and sustain a healthy client base in all 4 areas year-on-year. 

Can you give a few examples of insurance products aimed at the Professional Middle Class?

  We have the Tuition Protection Policy.  School fees takes up a major slice of the family budget. For as little as N18 per day, Tuition Protection Policy ensures that 1 year’s school fees will be paid in the event that a parent or sponsor passes on or becomes permanently disabled as a result of an accident. The policy also responds in the event that parent or sponsor becomes un-employed. 

  We also find that employers, particularly mid-size companies, trade unions and professional bodies are expressing interest on behalf of their employees and members. Indeed, if an employer or union is able to enroll 50 or more people on the scheme, they might be able to see additional benefits.

  Another insurance product is Personal Protection Policy. Parents with University age children who, naturally lead active lives and are therefore exposed to the risk of, say sporting injuries, may consider this policy worthwhile.  The policy may also benefit those with so-called domestic staff, such as maids, driver etc and small business owners.

  For as little as N10 per day, you can have a policy that responds in the event of personal injury or accidents such that medical bills are paid or ameliorated.

  We have other insurance products (such as property, health and travel) that respond to the lifestyle needs and demands of the Professional Middle Class.

In your service offering, what kinds of products respond to a small-mid-size business?

  We have a Vehicle Insurance Plan. This policy is aimed at Car dealers, Fleet Managers, Haulage and Logistics companies. The policy offers free insurance for new vehicle buys as well as other benefits, such as free breakdown recovery cover and free tracker installation. 

  Details of all theses can be found on our webpage, www.gorisknigeria.com

You also mentioned niche businesses. Can you give us a few examples of the businesses you have in mind and related policies?

  One area is property.  There is now a plethora of housing estates. Estates are seen as offering greater security, tranquility and quality of life. They also have communal infrastructure, which enhances the lives of the residents.  We work with Estate Managers, developer and property owners to procure necessary insurance for individual properties within the Estate and also in respect of communal assets on reasonable terms and rates that are considerably lower than what individual residents/property owners may be able to secure for themselves.

  The Estate Management Company may take out a block policy, which then names individual property owners. The advantage being that such block policy enables us to secure attractive terms from insurers. 

  We have insurance products that protect lenders’ interest, event planners and organizers (to take account of unplanned cancellations, etc).