Stakeholders in the insurance industry have called on insurers to make the business customer-friendly in order to deepen penetration and win the confidence of prospective policyholders.
The views were canvassed at a one-day conference organised by Insurance & Pension Editors of Nigeria (IPEN) in Lagos.
The stakeholders who cut across Regulators, Insurance/Pension Operators, Insurance Agents and Advocacy groups stated that deliberate efforts should be made to bridge the knowledge gap and create much-needed awareness in the industry as key to contributing meaningfully to the country’s Gross Domestic Product (GDP).
The stakeholders agreed that the insurance industry needs overhauling in its approach to doing business, and disclosed that about 52 insurance firms are viable in the country.
They expressed worry that the country has less than two million policyholders, hence its contributions to GDP hovering around 0.2 percent.
Mrs Susie Onwuka, while speaking during a panel session on the Consumer Protection Commission, stated that most of the complaints received by the Commission from policyholders are mostly on lack of adequate disclosure from insurance companies on policies sold to would-be clients.
She said, “What is presented to the consumers is usually different from what the policy being sold actually is”.
Mrs Onwuka called on players in the industry to urgently address the knowledge gap in the insurance space, noting that there is a need to retrain insurance agents, most of whom do not have a full understanding of the policy they are made to market.
She advised the industry to do more to win over customers, stressing that “bureaucracy in accessing claims is cumbersome. The rigidity of policy, and nonpayment of compensation to policyholders who had paid their premiums for years, but failed to conclude the duration of his/her policy, amongst others brings discredit to the industry“.
Mr Takor Ivor, EVC/CEO of the Federal Competition and Consumers Protection Commission, earlier in his keynote address said consumer satisfaction is also a measure of how well a company’s product, services, and overall consumer experience meet consumer expectations.
“It reflects a company’s business health by showing how well the company’s products or services resonate with buyers. One thing that is certain in consumer satisfaction is that when consumers are satisfied, business will boom.
“In the digital age, we are now, consumers extensively research products across various platforms, from user reviews to influencer insights. They meticulously compare options before making purchasing decisions. However, winning the loyalty of consumers, especially in the pension industry goes beyond providing the services imposed on Pension Fund Administrators (PFAs) in the Pension Reform Act 2014. The same goes for insurance companies. It demands more.
“Now is the right time for leaders in both insurance and pension industries to rethink, redefine, and transform what their teams deliver and how this is delivered.”
“Transforming service delivery models will improve inside-led decision-making so that insurers and PFAs can exploit market opportunities in a strategic, safe, and informed way. Building an inclusive culture for service delivery has to be deliberate.
“Modern consumers seek brands that actively listen and appreciate them, and neglecting this aspect risks loyalty loss to competitors. For the PFAs, the transfer window has been opened and Retirement Savings Accounts (RSAs) are transferring their accounts from one PFA to another.
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