• Monday, December 23, 2024
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Insurers offer flexible options to drive penetration

Rex Insurance strategy for retail distribution strengthens with Jibowu Branch

Nigeria’s insurance companies have put on their thinking caps and are offering flexible products to drive penetration.

Insurers are keen on keeping existing customers while bringing new ones on-board amid strained wallets and declining toplines in Africa’s most populous nation.

Linkage Assurance has come up with Motor Third-Party Plus variants, which provide policyholders some flexibility in choosing insurance coverage that suits their needs and risk tolerance. They have a variety of products providing cover for events where guests are invited and do not have to pay to attend.

“These plans are designed to offer coverage at a lower premium, which can be especially attractive for individuals looking to meet legal insurance requirements or protect against basic risks without a significant financial burden,” Daniel Braie, managing director/CEO Linkage Assurance Plc, said.

Read also: AIICO Insurance pays out N200bn in claims, benefits in five years

Universal Insurance has developed ‘Shop Insure’ to drive traders to buy insurance cover in categorised areas for as low as N3,000 monthly.

“What we have done is to bring flexibility in the whole process, even in terms of payment,” said Ben Ujoatuonu, managing director/CEO, Universal Insurance Plc.

“We are making ‘insurance on the go’, where you can buy it on pay-as-you-use basis, particularly in motor insurance policy.”

The contribution of finance and insurance to real gross domestic product (GDP) totalled 6.81 percent in the first quarter of 2024, the National Bureau of Statistics (NBS) said. Insurance as a standalone industry contributes less than one percent. The same industry contributes about 2.3 percent to the South African GDP, says KPMG, and 19 percent to Morocco’s GDP, says the International Association of Insurance Supervisors.

Local insurance players are aware of these numbers and they want a break with the past.

Cornerstone Insurance said its ‘Cornerstone Rest (C-Rest)’ is currently the most embraced savings plan of the company for all classes of people, allowing individuals to grow their money with added free life insurance cover.

Muibat Jimoh, head of Life Technical at Cornerstone Insurance, said their products are now needs-based, providing solutions across wealth creation, retirement savings, children’s education and settlements for apprentice.

Similarly, Axa Mansard Insurance and Slot Systems Limited recently entered into a deal aimed at providing insurance cover for smart phones screens.

Rashidat Adebisi, country manager, Axa Mansard, said that the partnership with Slot became imperative given the economic situation in the country and the firms’ desire to make life easier for their numerous customers.

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Similarly, Sovereign Trust Insurance has made motor insurance flexible, and enables customers to pay per minute for covers.

“We are offering affordable motor insurance, where you get to pay per minute, per hour, or per day, whether you are driving or parked,” the firm said on its website.

More so, Sanlam Nigeria recently went into a partnership with microinsurance fintech firm, aYo Holdings, whereby they offer hospitalisation coverage for Nigerians.

“Through the partnership we would offer to Nigerians affordable life and hospitalisation insurance coverage,” they said.

Also, Great Nigeria Insurance Plc has re-launched affordable retail insurance products due to the need to assist policyholders even to the grassroots level to mitigate risks at pocket-friendly rates, the firm noted.

The products include: GNI Motor Flex, Great Savers Delight (GSD), GNI Fireproof and Personal Accident Insurance (PAI) the company said these were borne out of the need to offer more benefits to policyholders at inexpensive cost especially during this current economic situation in the country.

Funmi Omo, managing director/ CEO, Enterprise Life Nigeria, said her company has come up with innovative products to enable Nigerians to build savings, plan for the future education of your children and other needs.

She said the company has identified the need to create a new digital experience that gives users the advantage they desire.

The rate of insurance penetration in Nigeria is 0.5 percent, according to Agusto $ Co. Industry gross premium stands at N520 billion ($347 million) in Africa’s most populous nation. South Africa’s gross premium is $9.2 billion in 2023, while Morocco’s is $2.8 billion, says GlobalData, a multinational data firm.

Read also: Cornerstone Insurance braces for stronger growth on Alangbo’s one-year as CEO

The local insurance industry’s push is coming at a period of high inflation and shrinking consumer wallets. Sixty-three percent of Nigerians are multidimensionally poor and a lot of citizens do not have jobs.

“Price is key, and affordability is the only way insurance firms can make headway in the economy today. The purchasing power is quite low, especially with exchange rate crisis and high inflation. So, selling insurance has become tougher,” said James Otu, a Lagos-based economist, who once worked for an insurance firm.

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