The Generation That Has Lived Without Insurance

Proshare


Sunday, July 11, 2021   /09:28 PM /  OpEd By Ekerete Ola Gam-Ikon  / Header Image Credit: US News 

 

We are bright, intelligent and enterprising. We are graduates of the best business schools in the world and we influence decisions across different strata of the global economy. Importantly, we live amidst risks, the height of which is COVID-19 yet we remain determined to engage these agents of danger and death with our bare hands rather than invest in the weapon of risk management, insurance!

 

This is simply because we BELIEVE that taking an insurance policy is giving our money to some people who make promises they will not keep and give nothing when nothing happens after the expiration of the policies.

 

Debating Believability

Sometimes, you would think it should be easier to sell insurance to the educated person who understands risks, disasters and disruptions but each time I have had a conversation around insurance and risk management with such persons, I am left wondering how we would have achieved progress as human beings, if not for the unschoolede amongst us.

 

The unschooled believe in trying even if they have doubts but the learned will use their grandfathers' cases to debate about why today's offering is not beneficial because of what happened decades ago.

 

I am not challenging their right to such opinion and would not get anxious given their opinions, however, observing how hundreds of millions of people in Nigeria and Africa go through each day with increasing risks without insurance due to the opinions held by the generation that knows all, gives me goosebumps.

 

Poverty probably arrived with our birth, however the level it has grown to presently results from our poor attention to wealth protection, a basic panacea that insurance offers. You cannot leave your door open when you know that hoodlums are in the area and could attack anytime; so why do you put yourself on the road without insurance when you know that risks abound out there.

 

In a short while from now, we will be holding elections across Nigeria and voters will go out without insurance despite the historical reports of accidents and deaths during the few hours we are required to cast our votes. Who will advise us?

 

Even when we hear how disasters happen in other climes and it is reported that insurers paid claims that enabled the victims return to their lives, our generation will ask "How come insurance does not work here as it works abroad?" My answer has been "It is so because the influencers and decision makers there are interested in a safe and comfortable life for themselves, what kind of life are you interested in giving us?"

 

This generation I am talking about incidentally enjoyed insurance (protection) but not the formal insurance. We were insured (protected) by our parents either through traditional acts or just ensuring if we went astray we would always return home, if you know what I mean. Today, such protection has reduced significantly, yet we do not have many of us taking up insurance and, given our entitlement mentality, we are hounding others, especially governments at different levels, to protect us from the ills we had created by our actions and inactions.

 

As this generation begins to transit and handover to the next, the message is not quite clear about what they should do regarding insurance. Thankfully, that next generation is a bit bolder and desirous of steering their ships according to the information at their speed.

 

Looking Inwards

It was easy for me to decide to look inwards for the answers to some of the questions and posers stated above and this is what I found:

 

1. This generation does exist as well in the insurance sector and have similar doubts as the rest of us but are in it for what they can get out of it; just for the job! They are not even encouraging their children to become actuaries, one of the most sought after professionals in the world because it has an insurance relationship. In their circumstances, to make a sale, they would not debate with their peers but would offer incentives for the transactions to be consummated. Are you still wondering why insurance discounts and commissions are the highest while the industry is the only one where prices are going down? Certainly, it is a generational challenge that is likely following us. My position: The earlier we have younger executives taking positions of responsibility and leadership in the insurance industry, the better will be our chances of achieving sustainability with regards to the insurance sector and its connection with the rest of the economy.

 

2. Insurance professionals and practitioners also need some kind of education about the way people think in our society. "Nothing goes for nothing" is a common slang that we have lived with for eons. Whilst insurers struggle to explain the principles behind not getting anything back after the expiration of one's policy without any claim, the philosophy of getting something, even when you do nothing, will not let our people understand insurance. My position: It is about time incumbent insurers set up a foundation where contributions can be made by profitable insurance companies to address everyday issues that will be pleasing to policyholders, especially those that get nothing after their contracts have lapsed.

 

3. Should the insurance operators continue to look up to the Federal Government for a lift? Truth be told, insurance in Nigeria is a LAW, just like tax, and we are expected to respect it and do the needful to comply. However, in a democratic setting where anyone with locus standi can challenge the law in a court, even the Regulator is expected to engage stakeholders exhaustibly before seeking to enforce the law. Little wonder, the widely announced recapitalization process was suspended following a court injunction. My position: Insurance operators should think very broadly, and deeply too, about the possibility of the absence of the government to act in their favour and seek to sell from the standpoint of VALUE. Once you think of value instead of law, your mind receives ideas and solutions that will distinguish you from others. The good thing is, there are already insurers, brokers and agents that are conducting their businesses this way, so it is possible.

 

Emergent Hope

Thanks, only to technology, some of these questions will be answered while others would wait a while.

 

Many insurers and brokers have been releasing and launching tech solutions that tell us how easy it has become to buy insurance from the convenience of our homes and that speaks of the progress the insurance industry is making. Yet, this generation is keenly interested in hearing and seeing how we can have our claims settled and paid without the hues and cries that follow individual insurance contracts.

 

It is my hope that we will continue announcing the number of individual and corporate policyholders as the Regulator had started with the 2020 position of 1.03m and 891,218 respectively. They gave the insurance industry about N525b as Gross Written Premium and we are hopeful to hit the One Trillion mark by 2023 based on the Strategic Plan of the Regulator.

 

Let the next generation get more insurance in the face of more risks until we are in a safe place in our minds to declare that insurance is the most potent risk management mechanism, which helps us through recovery management after disasters; COVID-19 has been a good test!

 

Which generation do you belong to?

 

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 

 

Related Articles by Author 

  1. Celebrating MSME Day, Insurance Dares
  2. The Battle for Numbers: Going with 1.03m Individual Policyholders
  3. Time for Insurance to be Made Part of Our National Emergency Management Plan?
  4. Living Without Insurance Amid Insecurity
  5. Thinking of an Insurance Policyholder as a CEO
  6. Could We Have Saved UNIC Insurance?
  7. For a Better Tomorrow, Insure Today
  8. Why Insurance is Still Confusing to Many Nigerians
  9. Will You Buy Insurance Today?
  10. The Cost of the Protests to the Insurance Industry
  11. Customers Expectation and the Insurance Industry in A New Normal
  12. Our Youths, Insurance and the Future
  13. Cyber Insurance - Its Relevance in the Emergent Cyber Ecosystem
  14. Rethinking Insurance as a Social Service
  15. AfCFTA: A Call to Action for the Insurance Sector - OpEd
  16. How Insurance Can Help us in 2021 and Beyond
  17. The Olden Days of Insurance versus The New Digitizables - OpEd
  18. Why Corporate Insurance Business Thrives - OpEd
  19. Is Missing the Recapitalisation Deadline a Death Sentence?
  20. Is Insurance All About Claims?
  21. The Protests and the Challenges for Conventional Insurance 
  22. Facts and Factors Behind Your Insurance Policies 
  23. Recapitalization: Types, Sizes and Shapes of What to Expect 
  24. Nigeria Celebrates 60, Insurance Sings 
  25. Financial Inclusion-Changing the Strategy for Growing Risk Protection 
  26. How Policyholders' Complaints Are Improving Service in Insurance 
  27. Three Areas Digitization Will Transform Insurance 
  28. Is Insurance a Government-led Private Business in Nigeria? 
  29. Insurance: Switching from Hard Sell to Soft Sell 
  30. Protecting Us Through Insurance of Public Buildings 
  31. The Battle of Principles: Insurance Versus Business 
  32. Insurance: Leading through Women 
  33. Insurance Sector: Drawing Lessons From Others 
  34. Insurance Sector Leadership Changes and PolicyHolders' Expectations 
  35. Value Will Sell Faster And Longer 
  36. Democratize Insurance, Empower Citizens With Information 
  37. Has the Insurance Act 2003 Made Nigerians Poorer These Past Five Years? 
  38. Insurance Is For Others, Not You 
  39. Can Insurance Lead Nigeria's Economic Stabilization? 
  40. 20.Crisis of Identity Management, COVID-19 And Insurance 
  41. The Stalemate of Claims Payment 
  42. 22.Is Insurance the Silent Guardian for Nigeria? 
  43. 23.Insurance Before And After The Virus 
  44. 24.Insurances You Have, Unknown to You 
  45. Insurance of Stolen Properties 
  46. Insurance, Loved by Accident 
  47. Fires, Markets and Insurance 
  48. The Road Called Recapitalization? 
  49. Making Insurance Work in Nigeria: Structural Realignment Required 
  50. 30.What's A Support System Without Insurance? 
  51. 2019 - The Year of More Insurance 
  52. 32.Insurance Recapitalization: Four Reasons Why NAICOM Should Be Transparent 
  53. 33.Insurance - Good Product, Served Poorly 
  54. 34.Why Fake Insurance Thrives in Nigeria 
  55. 35.Rebuilding Trust In Insurance Relationships 
  56. 36.Insurance and Nigeria's Budget of Sustaining Growth and Job Creation 
  57. 37.Making Claims Payment the Basis Of Performance Measurement In The Insurance Sector 
  58. 38.5 to 9 Insurance Questions for Nigeria at 59 
  59. 39.Insurance Broking: Is Diminishing Returns Setting In? 
  60. 40.An External Memo To The President: How The Insurance Sub-Sector Can Help 
  61. Where Are The Insurance Amendment Bills Of 2008 And 2018? 
  62. 42.Kidnapping Insurance: Is It Hot In Nigeria? 
  63. 43.The Insurance Sub-Sector: Its Challenges As Opportunities For All 
  64. 44.Funeral Insurance - Bridging The Divide Between Culture and Financial Planning 
  65. 45.Insurance Recapitalization in Nigeria: What Policyholders Should Do Now! 
  66. 46.Nigeria: New Minimum Paid-Up Share Capital Policy For Insurance And Reinsurance Firms 
  67. 47.The Benefits of Standardizing the Insurance Industry 
  68. 48.Microinsurance And The New National Minimum Wage 
  69. 49.Insurance In Nigeria: Approaching 2020 Without Digital Solutions? 
  70. 50.PMB's Second Term and Buharinsurance 
  71. Meeting The Insurance Needs Of Digital Natives 
Proshare Nigeria Pvt. Ltd.

  

Related News - Insurance

  1. Tangerine Officially Launches in Nigeria, Targets at least 8 African Countries by 2024
  2. Be Future Ready with Stanbic IBTC Insurance
  3. 6 Things to Know About Buying 10-Year Life Insurance
  4. NAICOM Blindsided, NIA Acts, Expels IGI and 2 Others from its Membership
  5. Heirs Holdings Enters Insurance Market - Promises Insurance Revolution
  6. AXA Mansard Deepens Insurance Penetration in Nigeria; Creates Business Opportunity
  7. Airtel Nigeria Partners AXA Mansard to Unveil Mobile Health Insurance via USSD - *987*7#
  8. Expanding Africa's Insurance Sector with Mikir Shah, CEO, Africa Specialty Risks
  9. Defaulting Insurers Selling Assets Over Outstanding Claims - NAICOM
  10. Insurance Sector Update: Recapitalisation... Another Dead End?

 

 



Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.


 Proshare Nigeria Pvt. Ltd.

 Proshare Nigeria Pvt. Ltd.



Proshare Nigeria Pvt. Ltd.



READ MORE:
Related News
SCROLL TO TOP