Patience Saghana

Mr Yinka Bolarinwa, Managing Director of Law Union &Rock Insurance Plc in this interview with Patience Saghana touches on a number of issues bordering on the insurance industry including oil and gas insurance and the company he heads.

Excerpts
How would you assess the impact of the global financial meltdown?
I have always disagreed with those officials who said that Nigeria was not going to be affected by the global financial meltdown.

Nigeria depends heavily on crude oil. Because we depend solely on a commodity whose price is determined internationally, we are bound to encounter challenges. For instance, the manufacturing industry was affected tremendously; most companies in the sector are winding up, resulting in many employees losing the jobs.

People have lost their jobs and unemployment levels are rapidly increasing. On the other hand, compared to developed Western nations, we are not as dependent on credit. We are cash driven economy.

Do you think that there will be more international groups entering the market?
Nigeria has an immense market for financial services. We have a population of almost 150 million people; that makes us the hub of Africa.

Furthermore, Nigerian insurance companies are spreading its operations across the continent. International companies that are looking into ways of penetrating the Nigerian market might bring ideas into the system. The market is quite large and opportunities are found all over the country.

The penetration level in the Nigerian market is low compared to other countries. This is a clear sign of the opportunities available. Today, our system is not structured to encourage the common man to buy insurance. Many Nigerians still buy insurance because it is compulsory and do not see the real benefits of insurance products. However we are working towards creating awareness and building confidence in the general public.

The Nigerian Insurance Association (NIA) among other organisations, are spearheading the process of creating awareness and educating the general public on the benefits of insurance. There is still a lot of work to be done on this issue.

For instance, the Federal Government has come up with policies that will ensure that every public building is insured. We must come up with products that will stimulate the market. Furthermore and with respect of the penetration of insurance, people have a wrong perception of the industry. Some people still believe that insurance companies don’t pay up their claims but today that is a thing of the past.

What do you think are the most important things for global insurance player?
In order for an insurance company to become global, products that can sell beyond your country’s borders are required. You must be proactive to ensure that you can cope with the demands of the business; the company must be able to withstand pressures within and outside the country. It is very important also to have a wide understanding of the market to be entered before starting operations there.

When it comes to growth, what is your approach?
I believe in innovation as opposed to organic growth. Currently, we are focused on increasing our market share and attaining sustainable profits. We need to identify the yardsticks that we will use to measure our progress.
What is Law union & Rock doing to enhance human capacity?

We are now looking into job training. Currently it is relatively easy for new employees to join the organization and learn their duties very quickly.

However we need more structured training. We have one of the largest per capita production in the industry; hence, we are looking at ways to restructure our training programs to ensure that we mentor in their work as well as have them exposed to every market within this country.

We have already been conducting a lot of local training; now, we want to embark on offshore training. We would like to use training as a motivator and it is our hope to develop business schools so that we can maintain the quality of our staff.
What is your take on the Local Content Act 2010?

Nigeria has, for a long time, been dependent on crude oil. Now the Local Content Policy aims at having 70 percent of the risks underwritten by indigenous companies.

However, we must learn to respect ourselves and say good things about our country. Rome was not build in one day; we are still optimistic we will achieve that objective.  Law Union & Rock Insurance is not leaving any stone unturned in our quest to improve ourselves. We are training our personnel with the objective of improving the organisation. The Oil & Gas industry represents a great opportunity for our organization.

Nigeria has the potential to become one of the world’s top 20 economies by the year 2020. Is the country on track to that objective?

I think that the objective is achievable. It is possible for the country to reach the targeted growth. Nigeria is endowed with plenty of natural and human resources, we have many opportunities and resources to achieve that objective.

However, we need proper leadership to get there. As said before, we the have human resource capacity and a large population, which is also an asset. We can achieve a lot with good leadership.

There is a lot of potential in Nigeria and investors are welcome to participate in economic growth and development in Nigeria. Nigeria with the largest population in Africa offers investors the opportunity to make money in a variety of activities in the economy.

Besides oil, there are opportunities in the financial sector, energy, infrastructure and housing. Nigeria has grown tremendously in the past and is now addressing certain issues that don’t help the image of the country. The business environment in Nigeria is investor_friendly and the opportunities to make money are everywhere.