Sometimes when you live in a clan for too long while the world is changing very quickly, you face internal and external battles that you’ll either confront or be put under pressure from unexpected people, places or things.
For example, the insurance companies in Nigeria having to deal with financial obligations namely claims, statutory payments, employees’ salaries and payments to suppliers. These insurance companies are often unknown to the public because the names are not publicised and YOU are required to find out on your own.
The shape of the “insurance war” is both internal and external, and you may say, what’s the big deal, after all, it happens elsewhere. Let’s find the difference.
• Change is Coming
The leardership of the insurance industry in Nigeria is changing in a rather disruptive manner both at the regulatory level due to short time the Commissioner for Insurance has for his tenure to be renewed, and the operational side given the directive of the regulator for their CEOs and EDs who have served the maximum time allowed by the law to leave.
With the deadline of December 31, 2023 for insurance companies to heed to the regulatory directive, we expect to see these changes, before the end of the year, and many are hopeful that this will bring a new order in the industry.
It is therefore important and necessary for YOU to follow the news and developing stories about the insurance industry, so you’re well informed about the status of the licensed insurance companies, because some are going to be sold or taken over by new owners.
Claims, the linchpin of insurance business will remain on the front burner while communication will become the point of impact for expressing customers’ impressions.
What to look out for in successful insurance companies in Nigeria are few but not sufficient. Yes to prompt claims payments depending on the mindset of their leaders. Yes to prompt delivery of documents and yes to reliable renewal system.
However, customers desire to be informed regularly in a manner that keep them informed about the insurance industry in Nigeria. No insurance company currently does this consistently especially using the social media platforms. Insurance companies are still not appearing where existing and potential policyholders (customers) are, because their leaders feel those platforms are either overburdened by social miscreants or hate messages that do not bring value to the industry.
Join the “insurance war” today by scrutinizing everything that comes to you; ask the hard questions about leadership and future actions especially as they may affect you.
• The dimensions of the “Insurance War”
Today, the small disagreements and battles between the Insurance Companies and the Insurance Brokers have become the crux of the “Insurance War” being watched by customers.
Why should Insurance Brokers be at war with Insurance Companies when they’re playing completely different roles? Why do insurance companies insist on dealing directly with the customers mindless of the insurance brokers?
As a customer, be mindful of the situations expressed here so you are guided. Avoid getting involved with how the Commissions from your business is shared so you’re not compromised while discussing your claims when they happen.
The unending “Price Battle” within the “Insurance War” has remained a very unnecessary and needless happenstance for years.
Insurance companies, especially the financially weak ones, have continued to deceive the insuring public. They give their customers very low rates to win the business but are unable to honour claims obligations when the need arises. Sometimes, it’s interesting to know that these insurance companies only pay the claims of certain customers to remain good looking before them while other clients have been crying for years, in some cases, over 5 years; and this affects individuals, organizations and government agencies. Nobody is left out!
The deep end of the “Insurance War” is the one between the insurance operators and the regulator over the latter’s approach to market development. The strategy of the current administration is hinged on market development, however, too many actions of the regulator emphasize collection of fines from the operators for the slightest missteps and it does not matter if it was related to premium earned, which one percent will go to the regulator.
Such middle of the road regulatory actions only creates a less innovative environment that stifles the initiatives needed to serve customers better. Notwithstanding, all operators are expected to comply fully with the law and punished when they’re found wanting.
As customers, you are entitled to answers over issues that you don’t understand. For example, there are reasons why the Premium Rates for Third Party Motor Insurance and Comprehensive Motor Insurance were increased last January. Rather than simply tell you the regulator set the prices, operators (insurers and brokers) should thoroughly explain the benefits to you.
• The Quiet End of the “Insurance War”
The insurance industry in Nigeria has not fully realized the potentials from its partnerships whether existing or upcoming.
For example, Bancassurance because there has been low fire in the relationship between CBN and NAICOM that has affected the momentum at which business transactions should be.
Only insurance companies that have relationships with banks are doing any form of Bancassurance and what has been generated as premium since 2018 is probably just 10 percent of its available potential. Insurance companies without shared interest with banks that have no holding structure are working to earn the confidence of one another. You should understand this and know that the suggestion by your bank to handle your insurance needs is deliberate and rewarding.
• Taking Advantage of the “Insurance War”
Knowing the war is on or looming is one thing, playing from the position of advantage is another. Let’s consider some points of advantage.
Firstly, you should put on your investor’s cap and take a study of the opportunities in the insurance industry that can make you the owner or part owner of an insurance company. You may be a tech entrepreneur, a communication mogul or an oil magnate, this is a really good time to add insurance to your range of investments given the benefits you can gain from it.
Secondly, insurance may be about deaths, losses and damages but the wealth that’s transfered from one generation to another or the investments insurance protects through matured Life policies or compensation for claims are the true values we can get without stress.
Lastly, engage in the knowledge sharing initiatives that are going on to enable you get more information about the insurance industry in Nigeria. You can even become a licensed Insurance Agent that’ll sell insurance to your friends and families and get some extra income with little stress.
The shape of the “Insurance War” as I see it will be won by the customers who are yet to realize they’re in a war because there is little consciousness regarding the customers.
There is presently too much reliance on people we know in the industry, rather than the system that works for all of us, due to the absence of any impressionable channel or point of contact.
Technology, the new competitor to insurance, would be a welcome party to the “Insurance War”, and the time is NOW!
Keep in mind that the war and the discussions around it are not on the table, so the weapons aren’t visible but you know who the parties are, including yourselves.
Your questions and comments will always receive my response.
I remain…
Assuredly Yours,
Ekerete Ola Gam-Ikon
+234-802-585-0344
olagamola@gmail.com
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