The insurance community in Nigeria is poised to upscale insurance penetration in Nigeria through strategic partnership with state governments.
The hint on this course of action was dropped recently by the new President/Chairman of Council of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs. Ekeoma Ezeibe, at a media engagement in Lagos shortly after her investiture.
Ezeibe stated: “We want partnership with state governments to gain entry and penetration for the people and businesses to know the benefits of insurance from the level of the grassroots. From one state, we shall move to other states as well.”
Ezeibe said her One Insurance Industry agenda is to empower the insurance sector to take her pride of place in the economy of Nigeria by using penetration to spread the gospel of insurance across the nation and take advantage of the provisions of the Nigeria Insurance Industry Reform Act 2025 (NIIRA) which has given enforcement powers to the industry regulator.
Responding to the initiative, Mr. Nelson Akerele, Managing Director/CEO, Enterprise Life Assurance Nigeria Limited, said: “This is a great initiative by the new NCRIB president and shows the proactive approach the new president is set to immediately show her presence. Additionally, she has prioritised partnering with state governments to drive insurance penetration as a key aspect of her agenda themed: One Insurance Industry.”
Akerele listed his key thoughts on the partnership as follows:
A: The initiative focuses on leveraging on local government structures and economic centres to expand insurance awareness and uptake, particularly in under-insured regions
B: Deepening Insurance Penetration: This is the core objective. By partnering with state governments, the NCRIB aims to reach the grassroots and underserved populations, a strategy seen as vital for the Nigerian insurance industry’s overall growth
C: Leveraging Economic Hubs: The strategy involves a targeted approach, such as launching a pilot program in Abia State, specifically leveraging the economic vibrancy of Aba, known as the commercial heartbeat of the East. The goal is to secure the commerce and infrastructure in major markets.
D: Alignment with NIIRA 2025: The plan aligns with the newly enacted Nigerian Insurance Industry Reform Act (NIIRA) 2025, which includes expanded compulsory insurance policies and strengthened enforcement powers for the National Insurance Commission (NAICOM). State government collaboration is essential for effective enforcement of compulsory insurance at the sub-national level.
E: Targeted Awareness Campaigns: The partnership will facilitate the spread of insurance awareness through the NCRIB’s six Area Committees, making them “engines for real insurance growth” across Nigeria, especially in regions with historically low penetration, like the Northern part of the country.
F: Building Public Trust: The success of this initiative is tied to promoting swift and prompt claims settlement, a vital component of building public trust in the insurance industry. Brokers, underwriters, and loss adjusters are all expected to collaborate in this effort.
G: Economic Sustainability: By securing assets and businesses through insurance, the initiative is positioned as a direct contribution to economic sustainability and the overall growth of the state and national economy.
“The new president’s focus on state-level partnerships is viewed as a strategic move to unlock the retail market and shift the perception of insurance from a service for the wealthy to a necessity for all businesses and individuals.”
Mrs. Idu Nwakuche-Okeahialam, Group Managing Director/CEO, Royal Exchange Plc, described the initiative as a good idea.
“It will help create the needed awareness of insurance products and services. It will also create jobs. Shareholders and Boards should encourage their management to engage.”
Mr. Jide Orimolade, Managing Director/CEO, Stanbic IBTC Insurance Limited, added: “This is a good initiative with the compulsory insurance and will further position the insurance industry in terms of insurance awareness. Partnership is one of the channels to use in the distribution of insurance products.”
Mr. Ezekiel Oloriegbe, former Corporate Services Executive, Veritas Kapital Assurance Plc, commended the NCRIB president for the market-state governments partnership idea.
“It is a good move. It’s long overdue. Deserves the support of the whole industry without exception.”
NB: First published in Africa Ahead!
