Underwriters are employing different means of making insurance popular.
One of such means is the MDRI- Market Development and Restructuring Initiative.
The MD/ CEO of African Alliance Insurance Plc, Joyce Ojemudia, explained this recently.
Speaking during the launch of their new office in Ogun State, she stressed the need for viable retail presence in insurance marketing.
The Nigerian Insurance sector remains largely underdeveloped with penetration at about 1% or even less.
This is attributed to several factors including poverty, inadequacy of distribution infrastructure and lack of trust by consumers.
Furthermore, there is widespread ignorance about the concept of insurance.
This was made known by The Brand, Media and Communications Manager, Bankole Banjo, who spoke to journalists at the event.
He also said the insufficiency of product differentiation encouraged unhealthy competition because of similarities in product offerings.
According to him, this further inhibits the growth of the sector.
Moreover, according to a 2017 report on statista.com, South Africa has the highest penetration of insurance in sub-Saharan Africa with 16.99%.
Namibia came second with 6.69%.
However, Nigeria ranked rather low with 0.3% at the time with the likes of Burundi (0.35%) and Centra Africa Republic (0.29%).
Also, analysts also say that claims processes contribute to the ineffectiveness of the sector.
Claims are largely paper- based and time consuming.
Making Insurance Popular
Banjo also said operators in the industry must be deliberate about the interest of consumers and review their strategies.
He also encouraged operators to tailor products to suit consumers’ varied and present needs.
Additionally, The MD/ CEO of Great Nigeria Insurance, Mrs. Cecilia Osipitan, highlighted the indispensability of ICT in insurance growth.
According to a PWC report, Nigeria’s growing middle class is a major demographic change that will positively impact insurance patronage.
Accompanied by improvements in educational and literacy levels, the growing middle class will better understand and afford insurance offerings.