The protection of policyholders in insurance contract by ensuring that their claims are promptly paid, they get the best service are key reasons for the planed digitalization of the entire industry, the National Insurance Commission (NAICOM) has said.
According to the Commission, this is critical in its responsibity towards insuring the insurance consumers are fairly treated and protected.
Sunday Thomas, acting commissioner for Insurance/ CEO of the National Insurance Commission (NAICOM) said as part of the Commission’s effort to develop the insurance market, it has commenced the process of attaining the full digitization of insurance business in Nigeria in order to keep tap with current realities.
“There is no hiding the fact in saying that the industry is currently lagging behind other financial services sectors in this regards. “
He said achieving this will ensure that, genuine claims are promptly paid by insurers, ensuring financial soundness and viability of the insurers to protect investments, right prizing of insurance products, value for money, use of technology for ease of transaction etc.
Thomas said the Commission is now more prepared to drive the IT revolution in the sector starting with itself.
“It is on this premise that NAICOM is working assiduously to see that all its operations are done online and real time by digitalising its processes and encouraging the industry to imbibe same. Appropriate steps are being taking to launch the Commission’s portal which will go a long way in blocking leakages in the sector, Thomas stated.
To remain relevant and survive in the future financial services industry, insurance companies must embrace digital transformation and this expert’s say has become necessary in view of changing consumer segment and appetite.
According to them, it is important that digitalization is quickly embraced to drive changing customer relationships and experiences, redefine value proposition and optimise business models and processes.
Remi Babalola, chairman board of directors, Law Union And Rock Plc had during presentation on the theme “Millennials: Digital Transformation & The Nigerian Insurance Industry”, said that the Millennials are either critical success or failure factor for the insurance industry both locally and globally depending on how proactive the insurance industry harnesses their positive characteristics.
“Proactive adaptation of their lifestyle or behaviour to innovate products by insurers to match their lifestyle needs will significantly change the landscape of the insurance industry.”
Babalola had said that with 92 million segment of the population as active users of the mobile phone, insurance business communication needs to change in order to achieve phenomenal growth in the insurance industry and financial service sector.
“Babalola also warned that “If your brand doesn’t show up in online search, Millennials are not likely to take you seriously.”
“Information available shows that the Millennials have the capacity and are in fact influencing purchasing decisions as well as how companies conduct business.”
“Insurers must therefore be ready to tailor their marketing strategies to align with the digital natives in order to achieve improved performance.”
He further stated that the insurance industry needs to embrace the strategic significance of social channels. “We need to be where the customer is and be part of the conversation where they interact, exchange opinions and levy complaints.”
“Insurance companies would need to allocate resources to study millennials’ habits and employ effective marketing strategies to sell multiples strands of insurance. Since they engage in a sharing economy, we may need to think of how to insure space and time.”
Modestus Anaesoronye
