Friday, January 10,
2020 / 12:22 PM / Bukola Akinyele for WebTV / Header Image Credit: Youtube, Dadson
In a recent interview with WebTV management expert and consultant on insurance Mr. Ekerete Ola Gam shared his perspective on the four Takaful Insurance licensed by the National Insurance Commission (NAICOM) and the 2020 outlook for the industry in Nigeria.
Speaking on the contribution of the current takaful insurance companies to the Insurance Industry, Mr Ekerete explained that from the 4 takaful insurers, only two had been licensed since 2016 and have been effectively contributing to the growth of the market, while the other two got their approval in principle in September 2019.
The Insurance Consultant said the firms have a composite license and they operate both General and Family Takaful across the entire country.
Looking at the area on how Takaful can deepen the Nigerian Insurance Industry that is experiencing low penetration, he highlighted some of the traditional challenges of insurance such as: public distrust, poor awareness, lack of skilled manpower, inefficient customer service and low technical expertise.
He was of the view that Takaful insurance can contribute strongly to deepening insurance penetration in Nigeria.
Giving an illustration, he noted that some of those who had heard about it thought it was non-profit and strictly for Muslims, not knowing that it addresses the expectations of traditional policyholders who complain that at the end of the insurance period they get nothing even when they had no claims.
According to him one of the Takaful Insurers has a professional without Muslim background on its Board.
"With the excitement that welcomed the last two firms given AIP, I would personally expect to see a Takaful Insurance Conference in the course of the year" He said.
Mr Ekerete believed the Takaful Insurance is a case of having a solution that meets the needs of people who are yet to be aware, informed and engaged.
On the recapitalization drive and its impact on Takaful Mr Ekerete Ola-Gam Ikon was optimistic that some big companies will seek to invest in the opportunities that exist in Takaful and Microinsurance.
Speaking on the financial inclusion strategy in Nigeria that is gaining traction, he believed it will be an opportunity to see how Takaful Insurers will contribute to scaling across the nation.
He encouraged the Takaful insurers to adopt the digital solutions to excite their customers especially the young population in Nigeria.