Insurers to drive new policy with 15 per cent premium rebate to health workers

Underwriting firms in nation’s insurance industry have expressed readiness in offering health workers a 15 per cent discount on new policies taken up in 2020 to cushion financial hardships linked to the COVID-19 pandemic.

The subsequent premium refunds to consumers in the sector with active motor vehicle policies at the pandemic interlude would cover personal accident, householder and motor insurance that do not apply on renewal in line with regulation discounts.

The Managing Director, Wapic Insurance Plc, Adeyinka Adekoya, described the gesture as a corporate gratitude for the noble effort of health workers, who are in the frontline of the battle against the COVID-19 pandemic.

According to her, insurers last week announced a pioneering initiative that cost millions of naira in premium revenue that would give refunds to its motor insurance policyholders from Wapic Insurance and ensures that customers are automatically credited with refunds based on this period.

Adekoya stressed that since the outbreak of the virus in Nigeria, the underwriting firm has contributed N40 million to the Federal Government’s COVID-19 response effort and free health cover for 5000 health workers to mitigate the spread of pandemic in the country.

Executive Director, Technical, Peter Ehimhen, who spoke on how to regain consumers’ confidence in the industry, especially during the lockdown, said that the firm refunded motor vehicle insurance premium back to policyholders as a measure to boost policy uptake and penetration that could take the sector to a greater height.

He noted that beyond financial and other contributions the company was making to fight the COVID-19 pandemic, the firm was serious about supporting its customers, particularly the most vulnerable during this difficult time.

The insurer takes pride in always putting customers first and continually improving its services to deliver a unique and excellent customer experience, he added.

“We know that customers are experiencing unprecedented circumstances and many are struggling to cope. We want to recognise the sacrifice they are making by driving significantly less as you support our country’s objectives in flattening the curve of the pandemic. We want our customers to know they can Rest Assured and we will defeat this pandemic together.”

The firm is passing the benefit of reduced motor insurance claims to existing policyholders. The refund will automatically be credited to customers with active policies at the end of the lockdown period.

A motor vehicle policyholder with the firm, Dele Akinduro, who spoke to The Guardian recently, was excited that if all other insurance operators can as well follow this gesture, it would go a long way in the lives of customers and also to the industry in terms of development.

A healthcare worker, who benefited from the scheme, Patience Udo, in a telephone conversation, confirmed the opportunity. She said before now, she wasn’t aware of what the scheme was all about, stating that it is the best option for every Nigerian in case of any unforeseen situation in the place of work.

The Executive Director Marketing and Brand Operations, NICON Insurance, Debo Oladejo, who also spoke to The Guardian, said the factor that scares people away from purchasing life policy was lack of trust in the insurance operators, that at the maturity of the policy, the insured would get exactly the benefit stipulated in the policy statement.

According to him, the common story is that the insured often complain that at the maturity of the policy, the insurance agents that come to collect his premium would stop coming even before the policy matures, either because he or she got another job, which may affect contact with the customer.

Owing to these concerns, some insurers have pledged to redefine life insurance policies by pushing to the market policies that give benefits to the insured while he or she still exists.

Indeed, some have developed policies that besides benefitting from the policy while still alive, it would help improve their financial well-being, especially at during times of economic difficulties.

Oladejo said that insurers had digitalised their operations in such a way that insurance buyers need not pay any cash to insurance agents.With this, insurers have to a reasonable extent built confidence in that the insured now deals with the company directly and once his or her policy matures, with the available documents he has, he would go directly to the company for claims.