FOR the nation’s insurance industry to address challenges faced in the area of low penetration, there is a need for the underwriting companies to expand the distribution channels for insurance products beyond the traditional norms.
This was a major point raised by the industry’s stakeholders, who gathered at the Nigerian Council of Registered Insurance Brokers (NCRIB) 2023 Chief Executive Officers (CEOs) Retreat, held in Ogere, Ogun State.
The Commissioner for Insurance, Sunday Thomas, who was the key speaker at the event, charged all arms of the industry to hugely invest in technology to compete or be able to meet the expectation of insurance subscribers in the comfort of their various destinations in the world.
Thomas said this has become imperative to support the commission’s efforts to bring emergent online platforms for the distribution or provision of insurance under the NAICOM’s regulatory purview in the interest of the insurance industry.
“An important issue is the need for operational standards to prevent or reduce, to the barest minimum, unethical practices which ridicule or impugn the integrity of the Nigerian insurance industry.
“It is given that strong and sound firms are better able to invest in the much-needed information technology solutions to ease operational pain points within the industry hence the need to dissuade portfolio broking firms”, he said.
He also revealed that insurance brokers must begin to re-examine the insurance broking value proposition beyond the traditional perception.
However, Thomas urged insurance brokers to explore “blue-ocean strategies” and digital technology to enhance their continued relevance and strategic positioning in the nation’s insurance market.
Also speaking at the event on the objective of the programme and the issue of low penetration in the industry, President, NCRIB, Rotimi Edu, said the CEOs Retreat has remained a permanent feature of the Council’s yearly programmes bringing together top-notch executives of each of the member companies for learning and networking.
Edu, who was represented at the event by the Deputy President, Tunde Oguntade, expressed delight that with members’ cooperation, the “Brokers-Centric” focus of the current leadership has been recording success.
According to him, “We are all witnesses to the increasing tempo of members’ interest in activities of the Council, while the same interest is being stimulated amongst insurance companies, which do everything possible to collaborate with our Council for their enhanced bottom-line and ultimate corporate progress,” he submitted.
He assured members that the council would continue to commit to these lofty ideals for all of them, with their sustained cooperation and support.
He said, “The growth of the market for insurance in Nigeria has been relatively limited. Our insurance penetration ratio of 0.5 per cent (computed as GPI as a percentage of GDP) ranks amongst the lowest in Africa.
“However, the low insurance penetration rate shows that there are abounding opportunities for the growth of the market.
“But to achieve a positive transformation of Nigeria’s insurance market, operators would need to stimulate the appetite of Nigerians for insurance with the introduction of innovative products and digital disruption of traditional processes and practices.”
He noted that brokers would continue to dominate the premium generation channels of the nation’s insurance market because of the expertise they brought to the development of the sector.
Thomas however, urged them to embrace what he called ocean-blue strategies to up their game.
“The ability of Brokers to explore blue-ocean strategies and introduce digital disruption to their business models will play a major role in determining their continued relevance and strategic positioning in the market,” he said.
