By Bakare Olufemi
Protecting family wealth across generations is crucial in today’s complex financial landscape.
High-net-worth families face numerous risks, from market volatility to legal liabilities threatening their assets’ stability and growth.
A comprehensive wealth protection plan is essential to address these challenges and preserve hard-earned wealth for future generations.
In this article, we’ll explore ten key strategies, including diversifying investments, implementing tax-efficient planning, fostering financial literacy, and utilising trusts and insurance, to help safeguard family wealth and ensure it remains a source of security and opportunity for generations to come.
The importance of generational wealth protection has never been more significant, particularly in markets where long-term security for families is not just a priority but a necessity.
In Africa, where population growth continues to expand and wealth distribution remains unbalanced, the demand for robust, reliable insurance solutions continues to grow.
According to Swiss Re’s Global Insurance Review (2023), the African insurance market is projected to grow by seven per cent yearly, driven by increased urbanisation, rising middle-class incomes, and the growing awareness of financial security. Life insurance has seen an upward trend, with penetration rates increasing from 2.8 per cent in 2020 to 3.1 per cent in 2023 across Sub-Saharan Africa, signaling the growing importance of long-term family protection.
The premise is clear— generational wealth protection is not all about accumulating assets. It is about ensuring that families have the resources to recover from life’s uncertainties, maintain quality of life, and build a foundation for future prosperity.
In a world of rising healthcare costs, volatile markets, and increasingly uncertain economic conditions, the need for life insurance has never been more urgent, especially in regions with low financial inclusion.
Recognising this, leading insurance group, Prudential Plc, a company with over 175 years of track record in the insurance and asset management industry, has been a leading figure in providing comprehensive protection to generations of families worldwide.
Prudential’s Journey leveraging global expertise to address local needs since its entry into the African market, the insurer has demonstrated a deep commitment to understanding the shifting dynamics of the continent’s economic and social environment.
Speaking on the development across the African market, particularly in Nigeria, the Chief Executive Officer, Africa, Prudential, Emmanuel Aryee Mokobi, said the insurer’s customer-focused solutions are designed to address intergenerational needs, offering a mix of life and investment products that secure the future for families across multiple generations. With operations in several countries, including Nigeria, Ghana, Kenya, Uganda, Cameroon, Côte d’Ivoire, Togo, and Zambia, Prudential’s customer-centric approach has been key to driving insurance adoption in a region where traditional insurance uptake remains low.
For instance, Prudential’s insurance products provide tailored protection for families at different life stages—whether it’s safeguarding against unforeseen health emergencies or ensuring a child’s education is uninterrupted, even in the face of financial hardship.
The integration of wellness programs and digital platforms further enhances the customer experience, empowering individuals to make informed decisions about their health and financial futures.
At the core of Prudential’s mission is the belief that everyone deserves to face life’s uncertainties confidently, knowing they are protected.
This is reflected in Prudential Plc’s diverse portfolio of insurance solutions, designed to meet the needs of individuals, families, and corporate clients across various industries.
The offerings include a range of Individual Life Insurance Products, such as Savings & Investment plans to help clients grow wealth, Endowment intends to provide future financial security, and Protection plans for financial support during unforeseen events.
Each product is tailored to address clients’ specific financial needs and goals, exemplifying Prudential’s dedication to enhancing financial security and resilience at every stage of life.
Making Insurance Accessible through Digital Innovation
To further support its mission of broadening access to insurance solutions, its Nigerian arm – Prudential Zenith developed a suite of Nigeria-centric digital initiatives that leverage advanced technology to meet local market needs.
The company’s digital solutions are designed to streamline interactions and make insurance more accessible to Nigerians. Through tools like the SimpleCRM application, Prudential Zenith Life optimizes customer relationship management, ensuring efficient handling of customer interactions, sales leads, and marketing campaigns. The Genesys Call Centre Solution automates and refines call management, reducing wait times and empowering customers with self-service options. Additionally, the Customer Portal and Website Sales Channel provide 24/7 access to policy statements, claims submission, tracking, and online payments, allowing customers greater control over their insurance needs.
For real-time support, the company utilises WhatsApp and AVA, a live chatbot that offers immediate assistance. These innovations, paired with Prudential’s overarching digital transformation efforts—including the strategic partnership with Google Cloud—highlight Prudential Zenith Life’s commitment to making insurance more efficient, accessible, and user-friendly for Nigerians and to meet their evolving needs.
Furthermore, Prudential has made significant strides in integrating sustainability factors into its business operations. This strategic pivot aligns with the global demand for more responsible corporate practices and reflects Prudential’s vision to protect not just individuals but also the communities and ecosystems in which they live. One of Prudential’s key sustainability initiatives in Africa focuses on financial literacy and education. By empowering individuals with the knowledge to make sound financial decisions, Prudential is creating a ripple effect that ensures long-term financial stability for future generations. In markets like Nigeria and Ghana, the company has launched programs that educate individuals on savings, investments, and risk management, with a particular focus on women and youth.
Notably, in 2019, Prudential Zenith Life Insurance Limited partnered with Junior Achievement Nigeria (JAN) to enhance financial literacy skills and cultivate a savings culture. This partnership facilitated the launch of ChaChing, an educational financial literacy program designed for primary school students aged 9 to 11. By targeting young learners, the program addresses the critical gaps in financial knowledge among youth, particularly those who have had limited opportunities to explore the financial landscape outside of school.
Recently, Prudential PLC made a significant strategic move by acquiring full ownership of Prudential Zenith Life Insurance, their joint venture in Nigeria with Zenith Bank, marking a major milestone in its African expansion. This acquisition not only strengthens Prudential Zenith’s position in the Nigerian market but also empowers the company to better address the growing insurance needs of Nigeria’s vast population, which exceeds 218 million.
Despite being the fifth largest life insurance market in Africa, Nigeria’s insurance penetration remains low, with less than 1% of the population holding life insurance policies.
This represents a substantial opportunity for growth as the life insurance market in Nigeria is valued at $770 million in gross written premiums, making it a central pillar of Prudential’s African growth strategy.
With full ownership, Prudential is now well-positioned to capitalize on the untapped potential of its Nigerian operations. This strategic acquisition creates long-term value for stakeholders while deepening its commitment to serving the people of Nigeria and protecting generations to come.
By leveraging its global expertise alongside a strong local presence, Prudential aims to drive innovation and deliver exceptional value to its customers, ultimately contributing to the growth of the insurance sector in the country. As Prudential continues to expand its reach and enhance its offerings, it remains steadfast in its mission to protect generations, ensuring that families across Africa can face the future with confidence and security.
