Stakeholders have argued that the low adoption of insurance policies by Nigerians is stalling the wheels of anticipated growth for the sector and the economy as a whole.
National Chairman of the Association of Registered Insurance Agents of Nigeria (ARIAN), Kazeem Olakunle Odewunmi, said there are less than two million policyholders in Nigeria.
He said: “Currently, less than 2 million policies are sold in Nigeria out of over 200 million people, so access is still very low. Nigeria ranks approximately 64th in the world in terms of insurance policy adoption. In Africa, South Africa leads with 15 per cent, followed by Egypt with 13 per cent, even Kenya is ahead of us, with a share above three per cent. This shows that Nigeria is still far behind in terms of insurance penetration.
Therefore, he urged members to adopt personalized service to promote policies and attract more prospects.
IPEN President Chuks Udo Okonta said achieving service excellence in the sector is a collective effort of all stakeholders.
He said: “There are several reasons cited for poor insurance access in Nigeria, including the country’s peculiar market environment, limited public awareness and negative public perception by those unaware of insurance. But in reality, inadequate service delivery is a major challenge why insurance acceptance is very low.
“However, the insurance industry is expected to reach the N1 trillion premium income target in the 2023 financial year, a feat that should have been achieved eight years ago, precisely in 2015. Pension fund assets in the pension sector’s kitty are expected to cross N18 trillion by the end of the outgoing year. These are and will remain great achievements. However, they are long overdue as this is barely scratching the surface of the potential and opportunities that exist in both sectors,” Okonta said.
He stressed the need for quality service delivery in the pension sector for its overall success and sustainability, given the retail nature of the Contributory Pension Scheme (CPS). “Achieving service excellence in the region is a collective effort by all stakeholders to ensure better service delivery.”
Head, Lagos Office, Federal Competition and Consumer Protection Commission (FCCPC), Mrs. Susie Onwuka, said the industry needs to do a lot more on customer satisfaction and enlighten on critical segments that could trip up the policy, rather than such Segments to surprise customers. At the point of liberation.
He highlighted the major challenge with insurance in Nigeria; Bureaucracy in accessing claims, poor understanding of policy clauses, given that some policies are too rigid for customers to understand.
Keynote speaker, Takor Ivor, Director of the Center for Pension Rights Advocacy (CPRA), said: “Now is the time for leaders in both the insurance and pensions industries to rethink what their teams deliver and how it is delivered, then This is the right time to define and change. ,
He said the change in service delivery models will improve internally-led decision making, so that insurers and PFAs can exploit market opportunities in a strategic, safe and informed manner. “Creating an inclusive culture for service delivery has to be deliberate.”
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