Expert laments slow rate of insurance growth …harps on need to enforce compulsory insurances
The Global Lead Strategist, JSP Communications Ltd., Dr Phil Osagie has lamented the slow rate at which Nigerian insurance business grows saying all hands must be on desk to revamp the sector.
Speaking at the 2nd Business Journal Insurance Summit held in Lagos, Osagie who likened Nigerian insurance business with countries in other jurisdiction said government should live up to its responsibilities by enforcing compulsory insurances.
According to him, government should ensure compliance as well as introduce sanctions to be meted out to defaulters.
He noted that insurance had remained the list in the priority of preference of every Nigerian, even as he called on the operators to think of new and better ways to do the business.
Regretting that only one out of every ten Nigerians has insurance, thus meaning that penetration is still abysmally less than one per cent urged practitioners to embark on awareness campaign and education of the people as a way out.
Osagie, who was lamenting that only four million vehicles out of 17 million that ply Nigerian roads have insurance while 13 million were left in the hands of fraudsters tasked operators to ensure prompt claims settlement to restore and sustain people confidence in the business.
He pointed out that insurance business in the country in the past was known for non settlement of claims, thus urging operators to report any claim paid.
He highlighted consumer apathy, cultural/religious beliefs system, low education/awareness among others as major factors responsible for insurance low patronage.
Osagie challenged operators that the kind education to be offered to the people should be consistent and capable of changing behavior. “I need to be told what will compel me to buy insurance”, he said.
Also speaking at the event the Director General, Nigeria Insurers Association (NIA) Thomas Sunday stated that in spite of low insurance penetration, the sectors volume of business has increased over time.
“When we talk of issue of penetration remaining at a point, for some of people, I think people just bound figures around.
But we know that Penetration has gone as low as .27 per cent of course there are reasons for that, now If you look at our total production and compare it with what it was some two or three years ago, you will know why. So in absolute,yes it is increasing in volume.
He noted that some of the problems the industry experienced in the past were caused by the insurance agents.
Consequently, he called on the agents to ensure individual training and retraining to ensure job efficiency.