Insurance Industry: Operators Call For Collaboration To Build Trust

Operators in the insurance sector have called for the creation of a platform that will help to build trust in the country’s insurance industry.

They spoke at the 2022 Insurance Industry Consultative Council Media Retreat in Ijebu Ode, Ogun State organised for members of the Nigerian Association of Insurance and Pension Editors.

While delivering the theme paper, ‘Media as a catalyst for insurance inclusion’ the Head, Corporate Communication, Polaris Bank Limited and President of the Association of Corporate & Marketing Communications Professionals in Banks, Rasheed Bolarinwa said, there was a need for a deliberate collaborative campaign for national awareness about the importance of insurance.

“A dedicated jointly owned media vehicle should be created by all stakeholders to serve as a news agency on insurance content shared with other media houses.

“Regulatory bodies in the Nigerian insurance industry are expected to partner with the Nigerian media industry towards creating a diverse and inclusive newsroom; that has content development and coverage strategy that builds audience trust in the insurance and provides for a better representation of different societies.”

Speaking on issues militating against insurance penetration in Nigeria, Bolarinwa mentioned doubts about insurance companies, a hostile economy, trust issues emanating from hidden clauses, inadequate access to Information Technology, weak regulatory framework, lack of skilled personnel and poor awareness of insurance services by the prospective assured, among other factors.

”The response that follows the mention of insurance or insurance companies to an average Nigerian is predictable.

"Negative reactions and lukewarm attitudes are the kinds of feelings that come with an invitation to insurance policies.

"This informed the low patronage and acceptance of insurance companies operating in Nigeria.

“This untoward reaction and attitude by Nigerians may not be unrelated to the poor attitude of the insurers towards the often repeated chorus of refusal to pay claims.

"Some insurance companies have truly developed a bad reputation for defaulting in the payment of claims.

"This, unfortunately, grew to become a negative public emblem that hangs beside their corporate identities.

"Invariably, the industry and the nation’s depleting Gross Domestic Product are big losers.”

While giving kudos to the industry for paying huge claims on losses suffered by millions of insured, Bolarinwa said “Things have changed though as underwriters have paid and are still paying huge claims on losses suffered by millions of insured that we read daily in the media.”

Speaking on how the hostile economy is affecting the insurance industry, Bolarinwa said “At this moment, insurance companies are not willing to invest the premiums in long-term instruments because of the fear of inflation built up over several years due to fiscal indiscipline and high inflation.

"Everybody knows in economics that short-term investment can only bring lower returns.

"With these trends, insurance companies will only be able to run on the spot; underwriters would not be able to pay claims. Only a viable economy that has a robust business environment can allow insurance companies to thrive.”

Speaking on the need to demystify insurance to take its pride of place in the nation’s economy, the communications expert said, “Insurance will only take its pride of place as a big contributor to the nation’s Gross Domestic Product as it applies in other jurisdictions when all stakeholders in the risk ecosystem are deliberate, consistent and methodical in simplifying what insurance is all about in words and deed.

"Firstly, there must be a unanimity of purpose to bake insurance and make it BI enough for all to benefit from the expected windfall.”