•To look out newspapers obituary announcements
By Henry Uche , [email protected]
Nigeria insurance industry has been wobbling within the financial service industry with about 0.3per cent penetration in 2021, and 12.25per cent growth in Q4 of 2022, report. In comparative terms, Nigeria is the lowest in Africa, both in penetration and growth rate, with Morocco at the top with 4.5percent penetration. Nigeria’s low rating in insurance penetration experts have argued are not far fetched as its citizens’ attitude towards insurance have remained lack lustre.
According to some experts, one of the major challenges bedeviling this financial sub -sector is lack of trust, confidence and negative perception the some persons hold about insurance contract with operators in the sector.
This perennial trust deficit came to be as a result of excruciating experience of some policyholders in the past in the course of processing their documents and meeting other terms and conditions before receiving compensation / claims in the event of unfortunate events or incidents. Other persons who do not have any direct business with any insurance company but have heard a number of sad stories told by policyholders run away from transacting any form of business with insurance companies.
More so it has been adjudged that the low penetration of the insurance and lack of financial inclusion were as a result of same dearth of trust and confidence. Though experts in the sector under review has been striving to see that policyholders and the publics at large have a positive mindset about the insurance business through different rebranded offerings.
Since this has been a major nightmare to the regulator, National Insurance Commission (NAICOM) and the insurers, the duo in its wisdom, benevolence and (appreciation to policyholders ) have decided to drastically restore and rebuild this trust and confidence.
During the 14th Insurers Committee Meeting held in Lagos recently, NAICOM officials and insurers agreed to conscientiously do something different to gain back the trust and confidence of the publics towards the insurance industry.
Insurers Committee is a body of NAICOM and CEOs of insurance companies in Nigeria which operates under the mandate of activating the ‘industry change Agenda’ aimed at strategically repositioning the industry.
Briefing newsmen shortly after the Insurers’ Committee meeting, a member of the publicity and communication sub- committee, Mr. Ben Ujoatuonu, told journalists that NAICOM has directed the Chief Executive Officers (CEOs) of insurance companies to immediately begin to publish names of policyholders in the National Dailies who have outstanding claims to approach the insurers for prompt payments.
Ujoatuonu who is the CEO of Universal Insurance, maintained that the publicity calling on such policyholders was not restricted nor limited to the National Newspapers but every other books and publications of the insurer which was meant for public consumption. By so doing, it would boost the trust and confidence of the public in the insurance market.
“One of the resolutions at the meeting was that, NAICOM to direct insurance companies to advertise in National Dailies, the names of policyholders who have outstanding claims to approach the insurers for prompt payments”
Moreso, Ujoatuonu told newsmen that the regulator and insurers have agreed to make documentation seamless, simple, and unambiguous for policyholders both at the point of entering into contract with them (insurers) through the point of seeking claims/ compensation.
He maintained that the plethora of documents involved in the process coupled with its complexities and ambiguities are source of worry to prospective and potential policyholders. Insurers were however challenged to adopt full digitalisation (technology tools) to serve their customers better and happier. “The purpose of reducing the bulky documentary at any point in time is to reduce delay in payment and abandoning of claims by the policyholders”
Another step taken by NAICOM and insurers to rebuild the walls of trust and confidence was a deliberate action to offer topnotch customer service. Having known that the customer is King, who determines the market share of any organisation, the need to redouble excellent customer service experience was heralded. This he said would be achieved if the insurer designs a policy tailored to give customers the very best experience at all time by every stakeholders in the insurance value chain.
“Customers relationship is key and determine retention. Policies to make customers (policyholders) very happy at all time should be factored into corporate strategies. Insurers must strive to come up with initiatives that will enhance customer-operators relationship, help to endear the operators to their customers as well as boost customer retention”
Similarly, the Head, Corporate Communications and Market Development of NAICOM, Mr. Rasaaq, Salami, made it known that forthwith, operators would go through the pages of National Dailies on a daily basis to look out for obituary announcements to see if a deceased has a policy with them (Insurers), so that their family members can be informed of the policy and claims payment. According to him, the regulator and operators believed the initiative would equally boost public trust and confidence on insurance and aid growth of the sector.
The Commissioner for Insurance, Mr. Sunday Thomas, had last year at a forum averred that insurance companies with outstanding claims would be mandated to publish the names of claimants in two national newspapers. Thomas noted that the publication would be done before insurance companies close their financial accounts for each year.
He maintained that the Commission has demanded the schedule of outstanding claims from insurers, adding that he was keenly following up with the operators on the schedule to ensure that current outstanding claims are paid latest by the end of first quarter 2023.
The Commissioner for Insurance stressed that the decision to publish outstanding claims in the dailies, stemmed from plethora of complaints from insurers that claimants are not coming forth with documents to process their claims.
According to him, the publications would help pass the message to the public that insurers are ready and committed to claims payment. He added that the initiative would make insurance companies pay claims willingly or forcefully.
The insurance expert posited that its practice in Nigeria in the past has had its good, bad and ugly days, adding that one of such bad and ugly moments that have significantly impacted on the image and perception of the industry was the issue of claims payment.
He affirmed that indeed the records and statistics of unpaid claims associated with some of the members was not applaudable and must be overturned to the benefit of all stakeholders.
The commissioner added that outright payments of claims by the insurer would become one of the basis for getting the regulator’s nod on certain issues like: endorsement, certification, approvals, rectification and other requests and expectations insurers may require from the Commission.
“I acknowledge and salute the efforts of those companies that are alert to their responsibility of prompt claims payment and encourage them to sustain the good practice.
“Insurance practitioners must be seen to be fighting this course sincerely and collectively for the future of insurance to be as bright as we expect it. We must not continue to harbour elements of destruction under our roofs,” he said.
Thomas stated that the issue of non-payment of genuine claims has always put the Commission and the entire industry on the defensive when it comes to insurance discourse in every stratum of the economy, stating that the Commission was doing all it could within the ambit of extant laws to see that the non-settlement of genuine claims was eliminated in the sector, with assurance of doing what it (NAICOM) says it would do in a timely manner.
“As we expedite action to see prompt payments of claims, we all must see insurance as a profession that should be a buffer for the economy while eliminating the toga of being the weak link within the financial services sector.
“We must practice this business with passion and resilient not just as a means of livelihood that we have to survive on but, that which every insurance professional should be proud to say ‘I am a party to this success’,” he asseverated.
Though there is no deadline given by NAICOM on these new initiatives, however, it’s expected of insurance companies to swiftly respond to the agreed directives by acting responsibly, as the number of claims going forward would tell whether or not there was compliance.