Technology, foreign investment, others changing the face of insurance industry

Evolution of technology in service delivery and distribution of products, as well as foreign investment that has brought new capital and expertise are two major factors changing the face of the insurance industry in Nigeria, an expert has said.

Other factors are advancement of professionalism, high ethical and professional conduct, as well as awareness creation, says Casmir Azubuike, managing director/CEO, AfriGlobal Insurance Brokers.

Azubuike who spoke at the Insurance Industry Consultative Council Media Retreat for Journalist said the Nigerian insurance industry is evolving from analogue to a digitally driven industry

He said office processes are getting automated, manual registers, records are being phased out, while policy and client statistics are now being spooled electronically, while policy documents are being generated and transmitted electronically.

“In addition, latest is the development of mobile app, which makes it possible for you to buy insurance from the start to finish including claims reporting and processing on your mobile phone from the comfort of your bedroom”

On injection of foreign investments, Azubuike said The Axa Group, The Allianz Group, The Old Mutual Group and lately The Tangerine Group ,The Enterprise Life Group amongst others, are foreign companies that have successfully gained entrance into the Nigerian insurance industry.

“They brought with them the much needed foreign investment and technical expertise, and the new capital injection will increase liquidity and create higher underwriting capacities, ” Azubuike said.

“These will no doubt contribute immensely in lifting the face of the practice of insurance”.

For advancement in professionalism, he said one of the major factors responsible for the battered image of the insurance industry in the early days was poor product knowledge of most practitioners.

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“Some sales agents of the insurance companies went about selling insurance products they had little or no knowledge of, making promises which the policy was never intended for. Thus, insureds were denied benefits, which they were promised at inception of cover, and so got frustrated and disillusioned about insurance.”

According to him, this very negative trend is now being reversed, as the industry has consistently produced qualified professionals in large numbers, organized educational training and re-trainings, conferences, seminars and workshops. Insureds and prospective clients are now better informed on the contracts they enter into. Incidences of claims denials have drastically reduced, he noted.

On high ethical and professional conduct, he said these are key change factors in the practice of insurance. Azubuike acknowledged that the industry must consciously and consistently promote ethical conduct and dismantle all pillars of ethical and professional misconduct.

“There must be recognition and reward for companies and professionals that adhere to high ethical and professional standards; Industry must checkmate infiltrator who introduce and lure members into unethical practices, stating that the new face of insurance practice must emphasise integrity, honesty, transparency, consumer protection and strict adherence to ethical and professional standards.”

On awareness creation, Azubuike stated that the industry of old was reputed for poverty, extreme conservatism; hungry and haggard looking workforce, antisocial, dishonesty, but the insurance industry of today has succeeded in reversing this negative image.

“Insurance firm’s offices and Brokers now own or occupy magnificent structures located in highbrow areas; employees are now well remunerated with attractive conditions of service, hence they are no longer poor and haggard looking, they are neatly and smartly dressed, driving very luxurious cars and of course have enough cash in their pockets to spend.

“The industry now organizes programs of pomp and pageantry with so much magnificent display and ceremonial splendour, and can now attract the creme de la creme of eminent personalities both in government and outside the government circle, ” he said.