Reflecting on insurance true life experiences everywhere
Consultant Management ~ Strategy ~Insurance. You can reach him via:+234-806-648-1111; +234-802-585-0344
As 2023 has just gone before our very eyes and we begin to experience the rising of 2024, I thought we should best reflect on some true life experiences that would enable us to appreciate the possibilities of making insurance work for us in Nigeria, from different perspectives.
- In the mid-90s, an insurance company entered the Nigerian market with the mantra “We will settle claims within 24 hours!” There was an uproar within and outside the industry regarding the practicality of this.
Within 24 hours, the insurance company was forced to restate and add “after full documentation” to its mantra, to avoid misleading the insuring public.
Many insurance companies during that time hinged their market penetration strategies on prompt claims payments!
What are the strategies of today’s market leaders anchored on if not prompt claims payments?!
- The trade association of insurance companies in Nigeria, Nigerian Insurers Association (NIA), has been known to take steps in the past to discipline and, indeed, expel members that brought disrepute to the association, by failing to honour their obligations.
Today, NIA has embarked on a campaign to clear “outstanding claims” by advising individuals and organisations owed claims to approach their insurers and report their experiences to the association.
Call it an End-of-Year gift, you’ll be right. Outstanding claims run into billions of Naira as reported in the financial statements of many insurance companies.
If you know someone or organisation that’s owed claims by an insurance company, this is the time to share the information.
Three years ago, two of the three insurance companies that NIA expelled, subsequently had their Certificates of Registration withdrawn by NAICOM, the insurance regulator.
- An insurance policyholder affected by the 2002 Ikeja Cantonment Bomb blast incident almost sent an insurance company into extinction after insisting on full settlement of its claims.
So, it seemed the Industrial All Risks Policy was not well written and left room for the Policyholder/Claimant to exploit.
The insurance company survived but the industry learnt from the experience and tighter terms and conditions were introduced in subsequent policies issued.
What could probably be the worst claims reported in the Nigerian market that threatened the existence of insurance companies in Nigeria?
- Times were, when pensions were still part of the insurance industry in Nigeria, that an insurance company was the core investor in key strategic business entities in Nigeria.
It gave birth to hugely successful businesses still standing tall in Nigeria today while the insurance company has been on its knees!
Many Nigerians also built and boosted their careers through this insurance company.
Probably, insurance companies in Nigeria have helped to build and boost many careers and businesses than any other sector; rather arguably.
If we, as a nation, desire to rebuild our economy in a sustainable manner, insurance should be our anchor. Let’s make it work for us!
Accept my best wishes as we boldly embrace 2024!
I remain…
Assuredly Yours,