Amidst hardship and the gradual restoration of the financial system, people and households are resorting to taking life insurance coverage for the safety of future earnings and their dependants.
A few of the shoppers say they’ve determined to embrace insurance coverage for long-term financial savings and capital accumulation, which could possibly be used for future functions, safety for kids’s training and maintenance within the occasion of the breadwinner’s loss of life.
These developments have resulted in growing demand for personal-line insurance coverage within the Nigerian market as proven by latest information launched by the Nationwide Insurance coverage Fee (NAICOM).
In keeping with the NAICOM, life enterprise contributed 41.8 p.c of the whole insurance coverage market manufacturing of N369.2 billion within the second quarter of this 12 months, regularly closing up on the final enterprise, which contributed 59.3 p.c.
Of this quantity, particular person life enterprise was the foremost driver at 41.8 p.c of the life premium generated, annuity enterprise at 24.7 p.c, and group life enterprise contributed 34 p.c.
Chinemere Obilor, an insured who took a 15-year life insurance coverage coverage of N10 million sum assured, mentioned: “I’ve determined to insure myself and my household, in order that we are able to have one thing to fall again on, whether or not I’m there for them or not.”
“Many Nigerians aren’t seeing hope in an financial revival, so individuals are pondering of what can preserve them afloat regardless of the scenario is.”
On why he sees insurance coverage as the very best monetary instrument for this function, he mentioned: “The issue is that lots of us don’t perceive insurance coverage and its advantages.”
“Life insurance coverage is a double security measure for cover. It could actually assure you future earnings and on the similar time be a fallback place for your loved ones in case of loss of life. For me it’s higher than simply protecting cash in a financial savings account,” Obilor added.
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Bankole Banjo, a model, media and communication supervisor at a life insurance coverage firm in Nigeria, mentioned the pattern in demand for all times insurance coverage merchandise was linked to the general improve within the quest of the typical Nigerian, notably the center class, to safe their tomorrow.
He mentioned: “You see lots of people on the so-called ‘japa’ prepare, and the underlying issue driving that for many is individuals eager to do it for themselves, ready to safe their tomorrow.
“I suppose that has now filtered into the uptake of insurance coverage too, as individuals now, greater than ever, are aware of deliberately planning for a greater, secured tomorrow. And what higher means to do that than by shopping for insurance coverage.”
Immediate settlement of claims and advantages might have additionally contributed to elevated confidence of the shoppers in life insurance coverage, as the information additionally present that the life phase of the enterprise recorded an 88.90 p.c claims settlement.
Joyce Ojemudia, managing director/CEO of African Alliance Insurance coverage Plc, mentioned paying real claims “is a belief we don’t intend to interrupt”.
“We’re not inured from present financial realities. We perceive how important the occasions are, therefore our boundless resolve and dedication to fulfilling our mantra of being with our prospects for all times,” he mentioned.
Ojemudia emphasised that the corporate’s claims fee course of is backed by year-on-year proof of fulfilled claims. “We are going to proceed to guarantee that our methods are up to date to satisfy up with the calls for of paying claims as and when due.”
Olumide Ibidapo, managing director/CEO of FBN Insurance coverage Brokers Restricted, who expressed confidence within the progress of retail insurance coverage in Nigeria notably the life market, mentioned the potential is big.
Ibidapo mentioned if the difficulty of low consciousness could possibly be addressed, with lots of funding in monetary literacy programmes and expertise adoption, a lot could possibly be achieved.
“A number of elements are chargeable for the low insurance coverage uptake charge in Nigeria, particularly within the retail phase. Essentially the most noticeable elements embody low insurance coverage/danger administration/ monetary literacy, low disposable earnings, perceived problem redeeming claims within the occasion of 1, and low adoption of the best technological platform by stakeholders to handle and drive the distribution of the retail merchandise, contemplating the amount/potential inhabitants or consumer base,” he mentioned.
If these main challenges are addressed, there might be a major insurance coverage adoption progress within the retail phase of the market, he mentioned.