Comparative analysis of Nigerian insurance companies

By Oladele Ayeleso, Lagos - Updated: Tuesday 12-05-2009

Fola Daniel, Commissioner
for InsuranceThe position of the Nigerian insurance companies in the face of the persisting global economy crunch, which was described as the fallout of the greed of a few decision makers and the failure of regulators of the market, is obvious.

The industry operators have consistently maintained that the purchase of insurance products is best for any individual or organisation at a time like this to weather the consequence of any unforeseen circumstance. The position of the insurable public also stands clear. The truth is, most Nigerians have negative perceptions of insurance business. The apathy, as investigation revealed, is borne out of the past experiences that some individuals had with fringe insurance players that dominated the Nigerian insurance market pre-consolidation era, especially when it was time for the companies to discharge their obligations.

Having noted this, both the operators and the regulators have gone back to the drawing board to find a lasting solution to this persisting problem.

Recently, a group of insurance operators gathered to brainstorm on the way out. It was concluded that the industry needed to go on mass awareness campaign. Aligning itself with this also, a non- governmental organisation, Media Campaign on Insure Nigeria (MCOIN), has embarked on different strategies that would ensure that the public embrace insurance.

The coming together of this group of operators led to the appointment of Mr. Kehinde Salami as the project consultant to Media Craft, a company which was saddled with the responsibility to work out the modalities on how to turn insurance to household name. Speaking recently, Mr. Salami said that a number of activities had been lined up which would be rolled out quarterly throughout the year.

The campaign, if properly done, will ensure that an average Nigerian has at least an insurance cover or something doing with insurance, thereby bringing insurance to a lime light. Mr. Salami stated that the idea to take insurance to every nook and cranny of the country started conceptually in about two years ago when a group of managing directors of insurance companies were ruminating on how the apathy against insurance products could be removed.

He stated further that the awareness would base on what the industry could do to lift the level of insurance awareness in the country.

He noted that Nigeria has the lowest insurance penetration in Africa, saying that in some developed countries of the world, insurance companies own other big companies such as banks.

According to him, Nigerians do not understand the advantages and benefits of insurance, stressing that insurance should be more relevant in a period like this when the entire world is experiencing economic downturn.

The Commissioner for Insurance, Mr. Fola Daniel, has been saying that the best way to create awareness of insurance is to promptly pay claims.