Thursday, November 21, 2019 / 12:57 PM / OpEd By Ekerete Ola Gam-Ikon / Header Image Credit: Army University Press
Looking around us, whether here or elsewhere,
online or offline and by whatever categorization we adopt, the ultimate aim of
DOING is to IMPROVE! The desire to improve our lives, living conditions and
standards as well as our relationships, and succeeding at these make working
meaningful.
Why do something that does not cause
improvements in diverse ways and areas of our lives?
This simple question has continued to inspire
creativity and innovation, sometimes, beyond our imaginations.
Too often, I have wondered how those
merchants viewed their lives, confronted by the risks of losing their goods on
the high sea, then decided to collectively and jointly relieve the one amongst
them that would face the anguish and pain of such loss. They did this on their
own for several years, indeed decades, before governments saw that what they
had was GOOD and decided to make it a law!
Insurance became probably the first GOOD law
by governments across the world, clearly intended to ensure protection of our
wealth and improvement in our lifestyle despite the risks we face.
From tsunami to hurricanes and
health/financial disasters, relief continue to be served through insurance,
albeit with little or no publicity. Often, high emotional outpouring reigns
when the unfortunate and unexpected events occur and the media
"celebrates" but after all have simmered down for insurance to take
its course, only a few hear and note it.
Who would not want a relief after an
unexpected incident? If insurance is such a GOOD relief (product), why is it
rejected in many climes?
What Governments Saw...
For
many decades after the merchants had been helping themselves to recover from
losses through insurance, other actors in different areas of the economy
adopted their approach and it had become a good system that relieved
individuals and enterprises in the event of losses. Indeed, the culture remains
till date amongst the non-elitist groups in our communities.
As
it happens till today, whenever governments see organised groups of people with
focus and potential for success, they move to take control of them and their
activities. So it was then, governments saw insurance merely as an
opportunity to control and once the laws were made, it was back to the people
to make it work. Sadly, the people have continued to wait for governments
that are, elsewhere, trying to take control. Government only saw an opportunity
to control the people and groups using the laws.
What Entrepreneurs Did..
Early
insurance companies that emerged after the governments had made insurance laws,
anywhere in the world, were founded by entrepreneurs with background in
merchandise. Even when governments tried to own and operate insurance
companies, they readily discovered that entrepreneurs were best suited to
operationalize insurance.
Entrepreneurs,
naturally, took the risks to set up insurance companies as one of the
opportunities they met and brought their skills in selling, customer profiling,
relationship management, communication and emotional support to bear on the
business. As with entrepreneurs, they looked beyond the profits and keenly kept
faith to ensure policyholders had good experiences.
However,
with the entrance of business schoolers into insurance, the entrepreneurs
steadily took their GOOD nature and intentions elsewhere. Little wonder, today,
there are less entrepreneurs in insurance operation in Nigeria, hence the
relatively poor state of service.
Less
than ten (10) of the fifty-seven (57) insurance companies operating in Nigeria
earn good rating for excellent customer service!
What The Customers Needed..
The
foundation of insurance, having shifted from what the merchants created for
themselves (no thanks to governments) left the policyholders with hope and not
the ASSURANCE they used to enjoy. In fact, such assurance still exists at the
level where people do "Esusu", which incidentally has no
control of governments.
Customers
of early insurance companies needed ASSURANCE and that is what today's
potential and existing policyholders still need yet insurance companies
including brokers and agents continue to serve them poorly.
What Today Demands
Firstly, with all that we have seen and heard as per increasing risks, even from
changes in climate and human behaviour, it is necessary for insurance
stakeholders to understand, firstly the intention of governments - to control
and not grow the insurance industry!
Secondly, entrepreneurs must take back ownership of the insurance industry
especially in Nigeria and Africa where the battle against poverty, hunger and
diseases must be won by those who do not want them anymore. Insurance
professionals need to listen more to entrepreneurs and build systems that truly
protects them and they will pay for the management of the risks they face.
Thirdly, the customers today just need avenues to express themselves and share
their experiences. If insurance can be sold or bought via mobile phones or
online platforms, that would be a bonus; no one gets an ASSURANCE speedily or
conveniently except from a source that the code is shared.
Customers
of insurance need to be engaged in the process that will serve them. That is
what they will TRUST. Our experiences determine our expectations!
We
are waiting for the wow effect.
About the Author
Ekerete Olawoye Gam-Ikon, MNIM, CPP is a
management consultant with specialization in Strategy and Insurance. He can be
reached via telephone on +234-806-648-1111 and +234-802-585-0344 or by e-mail
vide olagamola@gmail.com
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