Saturday, July 04, 2020 / 07:47 AM / By Ekerete Olawoye
Gam-Ikon* / Header Image Credit: ITIJ
It is natural for us to expect improvements when changes are announced
but we would often be jolted into reality when those who have the
responsibility to effect the improvements wait until their departure to express
the frustrating environments under which they operated, and led others.
As the leadership mantles change in Nigeria's insurance sector with the
recent announcement of the Group Managing Director of Cornerstone Insurance
Plc, Mr. Ganiyu Musa as Chairman of Nigeria Insurers Association (NIA), coupled
with the confirmation of Mr. Sunday Thomas as Nigeria's Commissioner for
Insurance by President Muhammadu Buhari, we are naturally expecting that there
will be improvements in these several relationships: Insurer-Regulator;
Insurer-Policyholder; Insurer-Shareholder; Insurer-Broker; Insurer-Loss
Adjuster; Insurer-Agent; Insurer-Reinsurer; Broker-Regulators;
Broker-Policyholder; Broker-Loss Adjuster; Regulator-Agent;
Regulator-Shareholders. My focus, however, is on the impact these changes will
have on insurance policyholders, hence the need to share some of their
expectations here.
General Expectations
Policyholders are persons or organizations including State-owned
Enterprises who have insurance policies (contracts) with insurance companies,
mostly as required by law and occasionally based on the needs of their
activities.
While they all have the understanding that, with their insurance
policies, if and when the unexpected happens, they will get relief
(compensation) from their insurers; some consider taking as much as they can,
by way of discounts, from the insurers because of the poor belief that they
will receive their claims payments from these insurers.
Those policyholders that seriously seek to have good insurance cover for
themselves, and may be, their assets and employees relate with the insurance
companies that are renowned for prompt settlement of claims. In most cases,
they engage the services of insurance brokers, knowing that it comes at no cost
to them.
Therefore, the expectations of the policyholders who push strongly for discounts with no regard to claims are that, importantly, the behaviour of their collaborators will not change despite regulatory warnings, and they will continue pressing for further discounts. On the other hand, those that expect more speed in the process of claims settlement will demand more transparency especially regarding individual policies.
More Expectations from Insurance Companies
The expectations of policyholders from their insurers and brokers have
probably leaped to quadruple levels after their experiences during
the lockdown period caused by COVID-19 pandemic. Some could not believe that
they will be able to complete their transactions, from providing all the
information needed to making payments and receiving policy (contract) documents
as well as claims payments in certain cases.
Some other policyholders enjoyed unprecedented incentives from insurers
that decided to respond through waivers of premium for motor insurance thus
opening up discussions about the real value of the policy amongst industry
analysts and potential policyholders.
Today, as Mr. Ganiyu Musa settles into his new role, policyholders
expect that:
It is my hope that he will adopt the report of his predecessor to enable
him consolidate on the progress made to ensure technology drives insurance
business in Nigeria
NAICOM |
Ensure protection of policyholders
through payment of long outstanding claims. Some individual life policy
claims are as low as N400,000 from the affected insurers. |
NIA |
Ensure customers' experiences are
improved through technology adoption in respect of claims management, product
innovation and sales channels. |
Singular Expectation from the Regulator
Existing and potential policyholders have a singular expectation from
NAICOM and that is to ensure insurers honour their obligations to claimants
without further delays. If every effort is made, including NAICOM possibly
paying the claims on behalf of the insurance companies, in cases where
inability to pay have been established, policyholders will naturally begin to
promote the ethos of insurance and the industry in Nigeria.
The massive opportunities that have emerged for insurance in this
COVID-19 season needs to be harnessed in a way that the insurance industry
would be on the path to contributing much more to Nigeria's Gross Domestic
Product (GDP) and the revenue base of government.
Just imagine that with less than one percent of Nigerians having any
form of insurance policy, the industry paid taxes amounting to N36.5b in 2018,
therefore with more insurance adoption, the revenue will increase; and
companies that have received claims payments (over N300b:2019) can remain in
business as well as boost employment.
The justification of having a viable insurance industry in Nigeria is not lost on our policymakers and we need the dynamics of insurance to escape the grasp of poverty now.
About the Author
Ekerete Olawoye Gam-Ikon, MNIM,
CPP, is a management consultant with a specialization in Strategy and
Insurance. You can contact him via e:mail olagamola@gmail.com and mobile +234-806-648-1111
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