Zainab Iwayemi
In line with its vision targeted at leading insurance company and non-banking financial solutions provider in Nigeria, Leadway Assurance is adding value to clients and other stakeholders in an efficient and reliable manner in the industry through its various programmes and products.
The insurance provider, overtime has learned to harness the power of technology in delivering customer-centric product through a seamless process made possible via partnership with tech expert firms and digital payment channels to improve its product offerings – a development that has significantly impacted the insurer’s earnings.
The company revealed that its gross premium written as of 2019 amounted to N90 billion in contrast to the N87.5 billion recorded the previous year while the total claim paid and admitted was N38.5 billion as against the N33.9 the year before. Also, the profit after tax improved to reach N10.8 billion in 2019 and the investment and other income for the same year was valued at N31.8 billion while the company’s total asset was N394.7 billion.
In addition to the rise in earnings, the insurance firm organises programmes and training to equip stakeholders with insurance matters. Recently, the insurance firm held an online event to engage journalists on the trends in insurance and how insurance firms, like Leadway, are able to tweak offerings to fit the growing need of customers in the digital era.
Speaking on the future of insurance in Nigeria, Akinyemi Alebiosu, head, principal investment and strategy, Leadway Assurance, noted that things are changing and as such, insurance companies are moving in the same direction through the introduction of new products and services that are rapidly created and fueled by the digital economy, low-cost computing, machine learning readiness and multiple entrants.
According to him, the future of insurance revolves around the category of products, underwriting, distribution and client services which have gradually transcended online, thereby allowing for insurance products and services to be done digitally.
Speaking on products as one of the key focus of insurance in the digital age, he noted that as a result of the increasing number of the population going online, insurance firms have introduced new products such as the usage-based insurance for motor vehicle policyholders to enable fast and seamless process, amongst other products being introduced such as, micro-coverage, pay-to-pay coverage, cyber insurance, micro-duration policy.
He stated that in underwriting, big data and advances in analytics and predictive modeling are providing insurance companies with a new tool to assess risk and underwrite customers through collecting a large amount of data in search of identifying underlying trends pattern and relationships that enables insurers to utilize large data set for forecasting and optimizing outcomes.
The analyzed data will be used in more accurate and decision making to help automate underwriting, making the process become more efficient, valuable and faster as well as enable a more accurate calculation of premiums, pricing and underwriting. In addition, it would allow the ability to better identify the risk profile of the insured using deep customer insight, help to detect claim fraud and help identify target markets whilst also predicting behavior and customer segment.
Alebiosu added that emerging online and social media distribution channels coupled with mobile and retailer/eCommerce partnership is an avenue for educating end users of insurance. He, however, asserted that companies that want to survive will have to be customer-centric.
Importantly, he noted that part of the challenges faced by insurers in delivering customer services in recent times include, customers need for transparency, speed and efficiency, as well as frequent personalized communications and more customizable products, effective management of both customers and partner relationships.
Highlighting the opportunities which lie in utilizing digitization to delivering a client service, Alebiosu pointed out increased connectivity, improved retention, conversational AI and call optimization as diverse space which insurers can tap to improve offerings.
“We shouldn’t be afraid of change; change will occur no matter what. It is how we approach it that matters,” he said.
Delivering his presentation on cyber enterprise risk management, Uzodinma Ibe, a senior underwriting executive, Leadway Assurance, noted that a large number of organisations suffered cyber-attack in recent years. He, however, revealed that insurance firms such as Leadway offer first-party and third-party enterprise insurance as a cover to the incessant online insecurity.
First-party covers damages which a policyholder and his business suffer and the coverage includes investigative services, business interruption and data recovery. On the other hand, third party covers damages affecting insured customers or partners on business and it covers settlement cost, media liabilities, legal fees.
Stephen Abdullahi, a risk manager at the insurer, pointed out that Leadway takes customers through seamless claim process in addition to operating a diverse claims notification channel – letters, emails, SMS, phone calls, verbal, website and mobile app – that makes it easy for clients to request claims.
Introducing leadway’s newest product, Oluwatoyin Agunmoyole noted that the gap in the Nigerian healthcare insurance system necessitated the birth of the product. She explained that in spite of relatively vast financial and human resources at Leadway’s disposal, it took the underwriter a long time to venture into the health business because the firm took time to make investigations so as not to make the mistake of just opening a new revenue line rather than solving problems.
She revealed that Leadway has partnered with health organizations to ensure policyholders get covered irrespective of challenges in health institutions.
“With the help of extensive IT deployment, providers can submit claims real-time through Leadway provider portal which allows payment to be made according to the providers chosen or preferred frequency through extensive deployment of IT for end to end management process – from identification of enrollees and beneficiaries to claim payment and to mitigate the risk of fraud on your scheme with multi-level quality assurance check,” she noted.
