Adebayo Shittu, Minister of Communications has suggested that leveraging Information and Communication Technology (ICT) in different ways can be used as a tool to grow the Nigerian insurance industry which he said has not been fully harnessed.
Some of the suggested processes, according to the minister, include but are not limited to; improved operational efficiency(including smooth communication between clients and company officials), office automation and optimisation, digital marketing and online marketplace for assessment and purchase of insurance packages.
In a press statement by Victor Oluwadamilare, Special Assistant on Media to the Minister of Communications, Shittu noted that the nation’s insurance sector, which provides support to the financial institutions has not been fully explored, saying that ”the Insurance sector despite being a major driver of business growth that provides a critical support system to the financial market has not fared well given the current size of the Nigerian economy and population.”
“Information available to me indicates that there are less than 1.5 million insurance policyholders, representing a paltry 0.9 percent of a population of well over 170 million citizens. Similarly, the gross premium of the sector is said to be less than 500 billion naira, implying that the sector contributes less than 1 percent to national GDP,” Shittu said while delivering a keynote address titled, ‘Driving insurance penetration with information and communication technology’ at the e-Insurnce conference organised by Pinet Informatics Ltd in Lagos recently.
Expressing confidence in the performance of the ICT sector as the fourth pillar of the Nigerian economy and a sector that recorded positive growth in 2016 in spite of the recession, he said, ICT tools could be utilised to develop innovative solutions to improve insurance practice, increase product development and expand market activities in the insurance sector.
Shittu is of the view that in other climes, e-insurance has already been fully adopted and various insurance products can be obtained through online insurance portals, which are programmed to tailor unique insurance packages to the distinctive individual requirements of prospective customers.
Some aspects of insurance that have been adapted to e-Insurance, he added, include auto and car insurance, health insurance, home insurance and life insurance.
The minister who was delighted with the organisers of the conference promised that government will continue to introduce and drive policies that will propel Nigeria to attain the status of a knowledge-based nation.
As a result, Shittu promised that the ministry will further seek to; grow the ICT sector contribution to GDP expanding broadband infrastructure and consequently resulting in improved quality of service, continuous capacity building to create a smart public sector workforce, and use ICT tools to increase government revenues, block leakages and reduce waste, while fostering transparency and accountability.
Jumoke Akiyode
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