By Rosemary Onuoha

OVER 30 percent of Nigerians are not buying insurance because they lack awareness on the benefits of insurance.

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Speaking to Insurance Vanguard on the sidelines of the Chartered Insurance Institute of Nigeria, CIIN, Education seminar in Ibadan recently, Rector, College of Insurance and Financial Management, Mrs. Yeside Oyetayo, said that another 31 percent of Nigerians do not buy insurance because they do not see value in it.

Oyetayo also revealed that over 30 percent of Nigerians also can’t afford insurance hence do not take up any form of insurance.

She said that low insurance penetration has persisted in Nigeria because factors within and outside the sector has continued to hinder insurance growth.

She listed factors within the insurance industry affecting penetration levels including poor product offering, negligence of rural population, inappropriate pricing, lack of skills, as well as non-availability of data or data analytics.

According to her, factors outside the insurance industry that affects insurance penetration include low literacy levels, apathy towards insurance, low insurance awareness and culture, as well as poor economic situation.

She also added that rising inflation and cost of living makes insurance less of a priority, even as socio-economic constraints, such as low per capital income; low insurance literacy levels coupled with religious, social and cultural barriers, which she said has led to apathy towards insurance.

Oyetayo said, “The main strategy for increasing insurance penetration is through value creation, communication and delivery and providing insurance responsibly.

“What does providing insurance responsibly mean? It means delivering appropriate products in a transparent, accessible, fair, responsive, and respectful way to informed consumers who are capable of using those products effectively.”

 

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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.