Insurance operators have urged underwriters in the sector to build and win the trust of Nigerians in a bid to increase insurance penetration in the country.
Speaking on the issue at the third National Conference of the National Association of Insurance and Pension Correspondents, NAIPCO, in Lagos, Director General, Nigerian Insurers Association, NIA, Mrs. Yetunde Ilori, said that since the business of insurance is about utmost good faith, then, insurers must earn the trust of the people to deepen insurance penetration.
Ilori said, “The reason Nigerians are neglecting insurance is due do the negative perception they have about insurance services. There is no regulatory enforcement of insurance like is obtained with pension. Misconception and misrepresentation is therefore another very serious problem that must be quickly addressed by operators in the sector.
“It is high time insurers understand what the buyers are looking for. How do the buyers want it as well as where do they want it so that this will drive a change in their behavioural pattern when it comes to deploying their limited resources,” she stated.
Ilori said that if insurance products are readily accessible to the people, it will attract more people and if it’s deployed through mobile phones and a familiar terrain such as the banks, people will take advantage of this and embrace insurance, thereby, deepening penetration as well contributing to the nation’s economy.
She said, “When developing insurance products, innovation and creativity should be taken into consideration. A product should be able to address the needs of the customer; it should be kept simply and flexible. Products should be scaled down in such a way that it addresses the immediate needs while insurance pricing should be scientific and commensurate discounts and incentives should be put in place so that people can love to enjoy it.”
Also speaking on the issue, Managing Director/Chief Executive Officer of Sunu Assurance Plc, Mr. Moruf Apampa said that insurers must know their customers, to be able to carve products that address their immediate needs, adding that, it is high time operators focus on the retail business.