• Tuesday, May 21, 2024
businessday logo


Loss Adjusters seek favourable environment to enhance contribution to sector growth

Loss Adjusters seek favourable environment to enhance contribution to sector growth

The loss adjuster’s arm of the nation’s insurance industry are seeking for favourable operating environment to enhance their contribution and boost the overall growth of the sector.

Dipo Olarewaju, the new president of the Institute of Loss Adjusters of Nigeria (ILAN) said the unity and cooperation of all arms of the industry is critical to achieving the overall growth of the insurance sector.

Speaking in Lagos during his acceptance speech as the 13th President of ILAN said relationships among the different components of the industry are still working in progress in terms of the relationship with one another.

“To achieve growth, each component must be willing to perform its role and corporate with the others to harness the full potential of our composite industry”.

During my tenure, I will strive to cultivate strong relationship will all branches of the industry particularly the National Insurance Commission (NAICOM), Olarewaju said.

Debo Ajayi, consulting actuary, TAF Consulting Group presenting the lead paper at the investiture ceremony in Lagos said a friendly insurance industry will certainly experience organic market development – premium income growth; higher coverage ratios; greater customer lifetime value and so on.

Read also: Guinea Insurance gets NAICOM approval for agric products

Ajayi speaking on the theme : ‘ Making Insurance Friendly in Nigeria’, said that ultimately, the customer is the reason for insurance business and is the one paying the premium, hence friendliness would engender trust and customers will trust a trustworthy insurance industry and will reward it with their loyalty.

“That means greater penetration and density, higher retention rates, greater referrals, more opportunities to up-sell, cross-sell existing customers.

“Customers will be “buying” Insurance more than the industry “selling” insurance,” he said.

He submitted that a friendly insurance industry will experience improvement in profitability, adding that according to a 2015 report from McKinsey, “Insurers that offer superior customer service beat their peers in terms of profitability.”

“At the minimum, there will be a larger revenue base to cover operating and marketing expenses. The drive to create customer value will lead to smarter processes and operations,” he said.

Ajayi noted that the creation of a friendly disposition will boost the morale of industry workforce and attract superior manpower up to senior management level, adding that career in the insurance industry will become what younger talents seek than it being the last resort in a high unemployment market.

He maintained that a friendly, growing and thriving insurance industry will attract more investments, both domestic and international, and quality shareholders to provide necessary oversight, stressing that aspiring to become more friendly is the right goal for the insurance industry in Nigeria at this time.