The lack of awareness on the benefits of insurance has been describe as major challenge affecting the penetration of insurance in African’s most populous nation, Nigeria.
Insurance penetration according to industry data stands at 0.45 percent to the GDP in 2023, way below its peers in Africa. In 2022, market penetration for South Africa is 11 percent, Namibia 7.8 percent, Moroco 3.9 percent, and Kenya 1.0 percent.
Tope Smart, group chairman, NEM Insurance Plc who spoke at the side-line of his company’s Fitness Walk in Lagos said, “Awareness has always been an issue in the industry, with many people unaware of the benefits of having the protection of insurance as a financial tool.
He said promoting insurance awareness through Fitness Walk is an opportunity to educate people about the value of insurance, distribute flyers, and explain how it can protect them.
“This effort cannot be overemphasized because one of the main reasons we have not achieved greater penetration is the lack of awareness, even among educated individuals.”
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“For us at NEM Insurance, we came in with the intention to make a difference. From the start, we have been focused on setting ourselves apart from the norm.”
Smart, said, “Our goal is not just to follow the status quo, but to create something unique. This is evident in our results, and we are proud of the difference we have made. We want to elevate insurance as a respected profession, one that appeals to young people, especially university students.”
He said insurance should be a source of pride, and we have seen first-hand, how we have changed the perceptions about the industry. I have had people reach out to thank us for impacting their children’s views on insurance.
“One example is a classmate whose son, after spending a day at our facility, was so impressed that he decided to pursue a career in insurance. This is the change we aim to create, Smart said.
“Yes, we’re encouraging our branches to organize similar initiatives across the country, especially in regions where insurance awareness is minimal, like in parts of Northern Nigeria. In these areas, there is a mind-set that “what will happen, will happen,” and insurance is often viewed as unnecessary.”
He said however that effort was being made to change the perception by promoting insurance awareness across all regions.
On the benefits of the Fitness Walk beyond awareness creation, Tope Smart said, “A healthy workforce is crucial for good performance and progress. Without it, achieving future goals becomes very challenging.
“That’s why, as a company, we are committed to promoting healthy workforce. We also recognize that the industry organizes an annual fitness walk through the CIIN, and we fully support this initiative, even striving to go beyond it. That is why we have organized three walks this year, and we believe it has made a positive impact on the industry.”
He said no matter how professionally skilled someone is, if they are not healthy, they won’t be productive. This is why we are passionate about promoting health in various ways. For instance, we have a state-of-the-art gym here at NEM, with facilities available to all staff, including on weekends.”
Additionally, we hold walkout sessions to engage all employees in physical activity. These events also serve as bonding opportunities, allowing staff to connect outside the pressures of work. It fosters a sense of community, which is essential for human capital development in the industry, Smart said.
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