•Debate rages as stakeholders await Commissioner’s verdict
By Henry Uche
The proposal to launch a dedicated radio station for the insurance industry has ignited a heated debate among experts and stakeholders. Proponents argue that such a platform could serve as a powerful tool to drive public awareness, educate consumers and strengthen the industry’s image.
However, critics question whether the initiative is a strategic priority, given the sector’s ongoing challenges, such as regulatory hurdles, claims disputes and financial inclusion gaps.
With divided opinions and strong voices on both sides, stakeholders are now looking to the Commissioner to make a decisive call on whether this bold idea will become a reality or remain a topic of debate.
Over the years, the call for transformative insurance awareness campaigns and education has echoed relentlessly among insurance practitioners, all in a bid to drive deeper penetration and broader acceptance of insurance in Nigeria. Despite these efforts, a significant challenge persists—many Nigerians, often characterised by their fervent religious devotion, have traditionally viewed insurance with skepticism, dismissing its principles and benefits.
The resistance to embracing the concept of insurance has resulted in the nation’s persistently low insurance penetration, which has remained below one per cent for decades.
In stark contrast, other nations around the world have embraced insurance as a vital part of their financial and social systems, achieving much higher levels of penetration.
The disparity highlights the urgent need for a cultural shift, one that can overcome deep-seated misconceptions and foster a new understanding of insurance’s crucial role in securing the financial future of individuals and communities.
In the light of the above, stakeholders recently renewed calls for the establishment of a dedicated radio station to boost Insurance education and penetration.
To them, it would be far more advantageous to redirect the N300 million earmarked for insurance rebranding toward the establishment of a dedicated radio station. They argue that such a platform would serve as a more effective and sustainable means of educating the public and promoting the insurance sector.
In light of this, they call on the National Insurance Commission (NAICOM), the sector’s regulatory body, to take proactive steps in collaboration with the College of Insurance and Financial Management (CIFM), the sector’s primary training institution.
Together, they could create this communication medium, which would not only enhance public understanding but also foster a stronger connection between the industry and the wider population. The initiative, proponents note, would provide a lasting impact by offering consistent, engaging content that addresses the misconceptions surrounding insurance, while also showcasing its value as an essential tool for financial security and risk management.
They also said it would facilitate the efficient spread of knowledge, offering a platform for real-time feedback from the public.
They added that it would create a unique opportunity for beneficiaries of the insurance system to share their personal experiences, providing invaluable insights into the tangible benefits of insurance.
However, industry watchers and analysts in recent times are keen to see what becomes of this proposed platform to advance insurance knowledge among the numerous uninformed and uninsured publics. Other listed benefits of launching a dedicated radio station include job creation for both insurance professionals and the wider public. Perhaps even more crucial is the potential for generating revenue for the industry through avenues such as advertising, marketing, and other commercial opportunities.
Nonetheless, in the heat of the campaign, Mr. Odion Aleobua, an international award-winning Public Relations and Marketing Communications professional said Nigerian Insurance rather needs a compelling integrated marketing communications campaign, not a radio station.
Aleobua, the Convener of the Insurance Meets Tech Conference and Founder of Modion Communications, voiced strong opposition to the suggestion of diverting the N300 million allocated for insurance rebranding toward the creation of a dedicated radio station. This proposal was put forward as a means to foster sustained awareness and enhance the reputation of Nigeria’s insurance industry.
Drawing from his extensive experience as the former Head of Communications and Brands at Forte Oil Plc (now Ardova Plc), Aleobua acknowledged the noble intention behind efforts to improve insurance education and awareness. However, he argued that this proposition fails to address the pressing challenges posed by the rapidly evolving media landscape. In his view, a more strategic and adaptable approach is needed to effectively engage and educate the public in today’s dynamic environment.
“The Nigerian insurance industry does not need a single, isolated radio station to build awareness and sustain its image. The industry needs a comprehensive, compelling, data-driven integrated marketing communications (IMC) campaign that addresses the heterogeneous audience’s needs, leveraging the full spectrum of traditional and new media platforms.” He argued that while radio is a powerful and influential mass media platform, it has inherent limitations. A recent Statista report reveals that radio penetration in Nigeria stands at just 65%, far behind the more than 80% penetration of mobile phones and the internet. Moreover, urban youth—the very demographic crucial for expanding insurance penetration—are increasingly turning to digital and social media platforms for valuable information and seamless entertainment.
Although a dedicated radio station may serve a specific niche, it falls short in comparison to the reach and flexibility of a well-executed Integrated Marketing Communications (IMC) campaign. An IMC approach, which seamlessly blends radio, television, print, out-of-home advertising, digital media, and experiential marketing, offers far greater impact and the ability to engage a broader, more diverse audience.
He said a contemporary IMC campaign would empower the industry to meet its audience where they are— listening to the radio in their cars, watching TV in their living rooms, browsing social media on the go, engaging in local communities, or accessing content and relatable narratives on their smartphones.
“The essence of successful communication is convincing a heterogeneous target audience with intentional messaging, brand positioning and call to action”, Aleobua continued.
“Instead of fragmenting our efforts, we must build campaigns that integrate various platforms, amplify consistent messages, and create emotional connections with the audience and risk management education. This is how we can shift the perception of insurance from a complex product to a necessary tool for wealth creation and financial security.”
“Whilst we cannot allocate a ballpark figure to a proposed IMC creative industry campaign, the N300 million in question could be deployed through various tactical vehicles”, Odion recommended.
Deepening insurance penetration
Another way to deepen insurance penetration is digital engagement by developing entertaining and relatable social media campaigns and narrative engagement that help demystify insurance as the most reliable non-banking financial services for wealth creation, lifestyle maintenance, and asset protection.
Also listed is community engagement by activating well-thought-through hyper-local, grassroots and community outreach programmes tailored to Nigeria’s diverse socio-cultural realities, positioning insurance services as a wealth creation tool, prosperity protection and generational wealth transfer.
Another area is strategic partnerships. Experts note that one of the banes of insurance offtake is the dissuasion from unrealistic myths about cost and religious beliefs. However, Nigerians believe in the fidelity of credible opinion leaders and community leaders. So, the campaign must strategically target collaboration with credible influencers, Nollywood, and music artists as champions of insurance messaging within the country’s pop and mainstream cultures.
Subliminal content creation is another way of deepening insurance penetration. Insurance messaging and marketing can be very boring. So, there is a need to be very tactical in producing high-quality, entertaining and relatable content across platforms, including podcasts, blogs, and video series that subliminally tell insurance stories that are easy to relate to and help educate Nigerians.
These initiatives would educate, inspire trust, and foster long-term relationships with prospective off-takers.
To ensure the industry can track the effectiveness of the proposed IMC campaign, the campaign team should consider the following: Conduct pre-campaign market research to scientifically understand the target audience’s preferences, habits, and pain points to help the comms strategy tailor messaging to be more impactful.
Another thing advocated is regularly monitoring and modifying the campaign strategies by implementing analytics tools to track engagement and feedback, enabling continuous campaign improvement.
Inviting different stakeholders, including insurance providers, tech startups, and marketing experts, to share insights and best practices can lead to more innovative approaches. Insurance Meets Tech is already doing this in the space.
“The Nigerian insurance industry must be audacious about innovating its awareness and marketing communications efforts, infusing technology and digitalisation, especially as the country’s future consumer population and demography are over 50% young, under 35 years and tech-savvy. With a compelling IMC campaign, the Nigerian insurance industry can transcend traditional boundaries, increase penetration, and ultimately become a cornerstone of financial inclusion in Africa”, Aleobua assured.
As the debate surrounding the issue deepened, Mr. Bankole Banjo, the Senior Marketing Services Coordinator at Sanlam Nigeria, weighed in with his perspective.
Banjo, who serves as the General Secretary of the Corporate Affairs Managers Committee of the Nigerian Insurers Association (CAMCONIA), shared his thoughtful perspective on the matter. While acknowledging that the idea of launching a radio station for the insurance industry may initially appear promising, he pointed out that, when viewed in the context of the broader media landscape, the limitations of radio become evident. In a country as vast and diverse as Nigeria, where public trust in insurance remains low, relying on radio alone as a medium to engage a highly skeptical and varied audience may not be the most effective approach.
For Banjo, the complexities of running a radio station go beyond the technicalities of broadcasting. It demands a sophisticated level of expertise across multiple areas, including content creation, audience engagement, and regulatory compliance. Moreover, such an initiative requires significant financial investment and careful economic planning. The sustainability of a radio station would depend not only on its ability to attract listeners but also on generating the necessary revenue streams to cover operational costs. Given these factors, Banjo emphasised the need for a more strategic and comprehensive approach that takes into account the dynamic and multifaceted nature of the media landscape, particularly in reaching the diverse segments of the Nigerian population.
“There are tens of radio stations in Lagos alone, for example, how do you cut through that clutter and make yours a defining voice in that space? Insurance has a long history of mis-selling and misunderstanding which many players are already correcting with pristine claims management, and real life testimonials. But would a product rarely bought but largely sold drive a targeted platform like radio?”
More so, he revealed that the overhead cost of running a business these days, and a radio station is skyrocketing.
“Indeed, outside Lagos, there are several radio stations who struggle to keep their stations afloat. Notably, there are tales of many radio stations who switch on their generator only for super important programmes, going off air for weeks etc are abound. Can our industry manage one effectively, without getting enmeshed in the technicalities of the same? I doubt it.
“So what do we do to drive this awareness we so desire? I’d say transmedia storytelling: tell stories that key into the market’s natural predilection and habits using platforms they naturally enjoy! We need to creatively tell genuine and sincere stories with transmedia potentials that resonate with our audience. Ours is a deeply cultural and religious society, we need to leverage those. When are we going to start having renowned religious leaders as our designated influencers?
“A tactically coordinated message from top religious leaders will likely sell more policies and build trust than a year-long radio campaign, for example. Back that with multiplatform engagements including PR, digital roadshows and cultural endorsements from traditional/community leaders and we would make massive inroads”
Beyond awareness, he added that storytelling also serves the advantage of being educational. “Our people know insurance, but they don’t know how it works. We need to show them how, from the corporate spaces to the retail market, there is a need for massive insurance education. And this education has to start from within. How many non-market facing practitioners really know the products they sell? You can’t give what you don’t have, let’s start the education from within and gradually take the gospel without.
“By and large, radio is a great retail platform to keep the message out there but you don’t buy a boutique just because you want to wear a particular nice shirt. Radio can be a platform to keep our conversations going, however outrightly starting a radio station requires too much short, medium and long term considerations we may not be able to effectively manage” he maintained.
Meanwhile, independent stakeholders from various sectors of the insurance value chain have called on the Commissioner to exercise his discretion in determining the most beneficial course of action for all parties involved. While they believe that launching a dedicated radio station to promote the message of insurance may not be the most effective solution, they emphasized that the decision could be more thoughtfully shaped if key individuals, groups, and industry analysts are consulted widely to assess the potential benefits and drawbacks. They stressed the importance of this thorough consultation, noting that the long-term implications of today’s decisions could significantly impact the future of the industry.