As discussions on micro insurance and how to deepen penetration in Nigeria and the rest of Africa take deeper scope in public discuss, an expert has suggested that unlike the traditional insurance, micro insurance products must be consumer oriented.
What this implies, the expert noted, is that products must be targeted at providing greater benefit to the insured rather than profit driven.
Ganiu Musa, group managing director/CEO, Cornerstone Insurance plc who spoke to BusinessDay at the sideline of recent AIO Conference in Cairo on the subject of micro insurance and how it can be developed to gain prominence in Africa said the insured have to see the benefit to be able to appreciate what you are offering, so the products must be one that works for the insured.
“As a risk manger, it is normal that when you are designing a product the first consideration is to limit the loss ratio, but in doing micro insurance it is going to be slightly different because it has to really focus on the benefit to the insured.”
Musa said the AIO conference was very rich, particularly the discussion on micro insurance and how it can be harnessed not only as veritable tool for economic development, but impact on the life of citizens. “I think the presentations were very rich, highlighting what the key issues are, in terms of product development, distribution as well as bringing to lime light key facts which are missing in the tradition insurance service.
“For us in Cornerstone, what we are taking away from here is that really insurance must respond to the needs of the insured and the needs of the society. For us in Cornerstone, we are taking the issue of micro insurance very seriously and it is one project that is dear to our heart. We are pursuing it very vigorously because we see huge potential and also an opportunity to impact on the life of the members of the society.”
“Coming home Nigeria, with our population of over 160 million, it’s obvious that majority of the insurance companies will be more suited to micro insurance,” Musa stated.
Speaking further on the role of insurance, he opined that effort must be geared by all stakeholders to develop the sector because of its capacity to bring stability to the economy and the life of individual members of the society.
“Insurance as risk managers will provide stability in an economy and if this happens, then the world all over which has been characterised with instability and uncertainty can bring a lot of value to the table. This will mean more investment, good returns, increased productivity, employment generation and better standard of living to the populace.
“To our valued clients, our promise at Cornerstone is that we shall remain the cornerstone to provide succour; we are here for the future and we shall be there to do all we have promised. No matter what life throws at you, Cornerstone will be there to resolve your challenges,” Musa assured.