THE SIGNIFICANCE OF HAVING INSURANCE COVERAGE IN NIGERIA

By Ekerete Ola Gam-Ikon

When we are discussing the harsh and excruciating effect of the decisions we took and are taking regarding our economy, little reference is made to insurance.

Do you know why? Gradually, we are getting to know that it is no longer because Nigerians are not aware of insurance but also, they have grown tough skins against anything that seems to test their patience and loyalty.

The spate of disappointments that Nigerians have faced politically, spiritually, socially, professionally, economically and otherwise have just left us unwilling to give the proverbial “second chance” to anybody.

In the business segment, those offering and selling promises and promissory notes have been worst hit. There were times people were guaranteed the benefits they will get at the end of certain periods but not anymore.

Little wonder, insurance sales have relied largely on looking for “new customers” every day. Despite the expanding size of our population, Nigerians are hesitant to buy insurance because they do not want to be disappointed again.

Interestingly, in their assessment of the situation, most insurance players rather attribute low sales to other factors like low disposable income and weak enforcement of the compulsory insurance products.

When you consider how much average Nigerians spend on airtime and data for their mobile lines, as compared to the premium payable for certain necessary insurance coverages, you will appreciate why you can save money by buying insurance and changing the way disposable income is mentioned around insurance.

From buying Personal Accident Insurance for as low as N2,500 a year to subscribing to Group Life Assurance for as low as N10,000 a year, the arguments about why Nigerians don’t buy insurance have changed.

The benefit of this write-up is more for YOU who is yet to buy insurance because you said or thought it is expensive and often come with disappointments.

There are currently more types of insurance sold by more reputable operators and more professionally trained executives working for companies with more capital.

You just need to change your approach: go through a licensed insurance agent or broker instead of your in-law or family friend; request for current information and data about the insurer you’ve chosen instead of simply taking what you hear from an Executive that may switch jobs months later.

Today, we are offered several insurance options and alternatives that we can select from depending on our needs and preferences. We have:

• General Insurance – Motor, Fire, Burglary, All Risks, Marine, Agriculture, Goods-in-Transit and Aviation are some of the well-known ones;
• Life – Endowment (Term Assurance), Group Life Assurance, Child Education and Annuity are some of the well-known ones;
• Health Insurance – Individual and Family Plans are designed to help us access medicare even when we have no cash;
• Takaful Insurance – The best known alternative to Conventional Insurance that operates a contributory system that shares risks and surpluses;
• Microinsurance – It empowers the active poor to be resilient in the face of unexpected risks by allowing us to pay little for short periods and get coverages;
• Insurtech – Using technology to deliver insurance with ease, convenience and very minimal chance of disappointments.

If you are not having any insurance coverage, it is not because you do not know or do not have the money to buy but you do not want to be disappointed. This is understood however you and your family or business can be saved the pains, anxieties and pressures that accidents and incidents come with when you are without insurance.

Insurance operators will do better not to disappoint when you carefully appoint them to handle your insurance needs.

#BeInsured #InsuranceWorks

I remain…

Assuredly Yours,

Ekerete Ola Gam-Ikon

Africa Bancassurance Storyteller Award 2024 Winner

+234-802-585-0344

www.olagamikon.ng