… As Leadway Assurance sets pace
By Rosemary Onuoha
IT is no longer news that insurance penetration in Nigeria is below one per cent and this is due to the obvious fact
that the greater part of the population have refused to accept insurance as a risk transfer mechanism.
For too long the general public has seen insurance from a negative perspective which is that ‘insurers don’t pay claims.’ This erroneous belief compelled the National Insurance Commission, NAICOM, to launch the Market Development and Restructuring Initiative (MDRI) in 2009 to kick-start the process of deepening insurance penetration in the country.
The overriding objective of the MDRI is to eliminate the already held opinion by the public that insurers do not pay claims as well as the creation of insurance products and services that will appeal to the people.
One company that keyed fully into the MDRI is Leadway Assurance Company Limited. Over the years, Leadway Assurance has introduced products and services aimed at deepening insurance penetration in the country.
However, there is still wide spread ignorance on the benefits of insurance. Added to this is an acute insufficiency of product differentiation which has led to cut-throat competition due to similarity of products being offered by companies.
These challenges so far inhibit the growth of the sector given the existing huge untapped opportunities in the country especially with the huge population.
The way forward
According to experts, for the insurance industry to thrive, operators must show vested interest in promoting retail insurance market segment, place interest of their customers at the centre of their business plan and strategy, as well as review and tailor their products to suit the present day customers.
The experts are of the opinion that operators must go a step further to focus less on corporate business and concentrate more on retail business as retail business is a veritable means of improving insurance market penetration in the country.
Having keyed into the MDRI years ago and having seen the need to be unique and not recycle already existing products, Leadway Assurance has since been churning out various retail products that are peculiar to the needs of the ordinary man on the street.
A recent and unique initiative of Leadway Assurance is the partnership entered with Total Nigeria Plc for Leadway’s easy-to-use 3rd Party Motor Vehicle insurance recharge cards to go on sale at some designated outlets nationwide.
With a view to deepen insurance penetration in the country, Leadway Assurance signed a Memorandum of Understanding, MoU, with Total to strengthen the partnership. In essence, with the MoU in place, Leadway’s 3rd Party Motor Vehicle insurance recharge cards are now available in some designated Total Service stations across the country.
Subsequently, these stations will not only be used as pick up centers for Leadway Assurance products, they will thereafter serve as collation centers for all insurance related issues such as claims processing.
At the MoU signing ceremony in Lagos, Managing Director/CEO of Leadway, Mr. Oye Hassan-Odukale, who was represented by the Executive Director General Business Ms Adetola Adegbayi said, “As an innovation-driven market leader in the Nigeria’s insurance industry, we are constantly seeking ways to make insurance products and services nearer, easily accessible and more convenient for our customers. We have developed our online infrastructure to provide real-time, online access and interaction for our clients.
“The partnership with Total reinforces that quest to further take insurance closer to Nigerians, whilst affirming our commitment to superior service delivery. Indeed, with this partnership, our customers, who are also consumers of Total’s array of products and services, would reduce their commuting time and cost to procure high value insurance products such as the motor insurance, at a single location.
Leadway Assurance is leveraging on Total’s wide retail network to reach out to motorists in particular and many more customers in remote areas where Total service stations are located, thereby bringing insurance closer to customers no matter their location.”
Managing Director of Total Nigeria Plc, Jean-Philippe Torres who was represented by the Territorial Sales Manager (North), Mr. Muftau Balogun said, “We are proud of the partnership with Leadway Assurance, a dynamic organisation, who shares our values of integrity, innovation, and superior service delivery. This is an association of caring brands.
“With this partnership, our outlets will become the first in our industry to have insurance products and services offered at the convenience of our customers from our service stations.
We have continued to expand our service operations beyond selling petroleum products by diversifying our activities to include other value offerings for customers such as bonjour for groceries shopping , Total Wash for car cleaning as well as Total Service for car repairs and maintenance. This partnership further illustrates Total service stations as Nigeria’s leading one-stop service stations for everything that enriches the lives of our dear customers.”
Benefits to vehicle owners
With the successful take-off of this unique initiative, vehicle owners can get the easy-to-use 3rd Party Motor Vehicle insurance recharge cards at 20 service stations in Lagos.
This is also a stress-free means of obtaining genuine motor insurance that is registered on the Nigeria Insurance Industry Database, NIID, of the Nigeria Insurers Association.
It is regrettable that many motorists have failed to appreciate the need to obtain genuine motor insurance policies and kept patronising fake dealers. This is in spite of the dangers attached to such action.
However, with the Leadway easy-to-use 3rd Party Motor Vehicle insurance recharge card, your vehicle is fully registered on the NIID.
Also, the recharge card avails a holder one million cover limit on third party property damage as well as unlimited reasonable cover for bodily injury or death of third party.