Low awareness, customer apathy stymie insurance industry growth

Low awareness, customer apathy stymie insurance industry growth

The insurance industry had witnessed a drastic change over the years, but in all the policy put in place for insurance activities had made and pushed it ahead of many other sector of the country. The strength and though of the people are not catered for by the insurance industries, in light of this insurance industry needs to look into apathy by tailoring their products and services to the taste and needs of their clients which in turns help them convert more patronize as regards to massive turnovers of financial transaction as a result of effective client satisfaction versus service delivery.

Recently, technology had been integrated in servicing insurance customers and clients, ranging from having online web presence, mobile applications and the Unstructured Supplementary Service Data (USSD) which had made insurance systems more flexible and customer centric.

Low awareness in the insurance sector as regards the oil and gas as this constitutes largely to the premium services to the sector as compared to other sector as currently, as there are over 14,000 accredited insurance agents are available in the country with close to 400 accredited and approved brokers as reported by the Nigerian Insurers Association, but in all, the Brokers covers a large percentage of the premium income subscriptions plan of insurance policy. This role cannot be underemphasized without giving attributes to the underwriters. Both offices are regulated by the National Insurance Commission (NAICOM) duly moderated by the government and back up by the law, act and regulations of the federal government decree.

Causes of low awareness in insurance industry growth?

 

Below are few options of the causes of low awareness in the insurance industry as if this is not worked on, we won’t be thinking of getting the desired result as regards the growth of the industry

 

  1. Public sensitization on insurance products and policies.

It is no doubt that only few of Nigerians are knowledgeable as regards the insurance products and policies, the insurance companies have a lot to do in this aspect, as there is no point having a product that won’t get to the end users, so this could be worked out using various means of promotion like 3d flyers and banners placed at strategic locations where they could reach the targeted audience, alternatively they can make use of animation videos to portray their image to the targeted audience, in like minds the use of  Radio and TV’s and community awareness could also be employed at getting the information down to the grass root who would be of greater patronage as the informal sector is one good place to promote information on insurance products and policies.

  1. Accountability computation

Major stakeholders in the insurance industry had received several attacks from clients who felt they are not duly compensated as at when due, and many felt the reason beyond their insurance subscription are not met, when the need arises, certain conditions are meant to be fulfilled before the compensation plan can be fulfilled. This had caused some beneficiaries (Insured) not to receive the expected reimbursement thus painting the insurance industry bad n the face of the populace and thus prevents the advertising and marketing scheme of testimonial appeal from been effective as only few got compensated amidst the thousands subscribers.

 

  1. Non excellent service delivery by underwriters and insurance staff

Its saddening that several approved and accredited underwriters or insurance agent by NAICOM only tries to lure beneficiaries (Insured) at the initial stage of the business engagements and in turns don’t give the accurate terms and conditions to them as most are placed on target and commissions which seldom makes them to just recruit this end users and dump them till the expiration of their premiums, when they contact them on the next step to make for payment to be concluded.

Going through the aforementioned points, we would agree to it that much is expected from the government agencies (NAICOM) and all potential insurance companies not leaving the fact that there staff must be carried along to further improve the Insurance awareness in Nigeria.

However, we would be discussing short but brief terms majorly used in the insurance industry (ies), which are used in the  context of this text:

  1. Insured – This is the person or person (s) which are duly covered by the insurance policy been subscribed for.
  2. Premium – This is an insurance terms connoting the amount paid by the insured to the insurance company.

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