By Favour Nnabugwu

The National Insurance Commission (NAICOM) is making plans to introduce parks and filling stations as selling points for insurance products. The Commission said the need to provide multi-channel outlets to sell insurance products has become imperative for the industry’s customers to buy insurance products at ease. Commissioner for Insurance, CFI, Mr. Fola Daniel, made this known to insurance correspondents, in Benin, Edo State.

Daniel said, “The major parks could serve as agents of insurance companies even the filling stations as outlets to sell insurance products.” He stated, “The Commission will come out with a guideline that will include them into the multi-channel outlets for insurance products” Daniel believes that multi channel strategy for underwriters offers a prime example of a key piece of the experience puzzle  as mobile and social media provide convenience and ease of use to customers, and will continue to grow.

According to him, “It is only in this country that one buys a new car and drives on the road without a number plate and insurance. If one buys a new vehicle in the US, it is right at the showroom that a number plate is fixed to the vehicle and insurance to go with it.” The CFI said the introduction of parks and filling stations will not only entice more people to buy insurance but will serve as touch-points to sell insurance products in addition to insurance agents and brokers.

To build trust, Daniel maintained that insurers will therefore need to design distribution strategies that can cater for present day-to-day demands of their clients and also position them to serve tomorrow’s need thus making multi-distribution strategy critical for revenue generation and expansion. He said insurers need to maintain strong customer acquisition and retention rates to ensure sustained organic growth, adding that the multi-distribution will not only help insurers to address changing customer needs but also help them address a range of technical issues that are having profound effect on both the life and non-life market.

Multi-channel refers to the distribution of insurance products through multiple distribution networks, ranging from direct networks and agents to brokers, garages and filling stations including major supermarkets.  Daniel said that multi-channel will enable insurers to expand their pool of potential customers by appealing to a greater number of segments, and catering to a wider range of needs.

He posited that revenue growth in the industry depends heavily on keeping existing customers and attracting new ones, preferably by utilizing those channels. “Insurers should manage the entirety of their relationships, across touch-points, and depending on customers’ personal needs and not just try to make customers satisfied with products and services”.