Follow Us on Google
By Chiamaka Ajeamo, [email protected] 08060655687
The Managing Director/Chief Executive Officer, NEM Insurance Plc, Mr. Tope Smart, is one of the quintessential leaders in the Nigerian and African insurance industry.
With over two decades experience as a CEO, Smart has built a proven track record of successes by playing a huge part in the transformation and advancement of the insurance industry.
Currently serving his tenure as the President of the African Insurance Association (AIO), Smart in this interview with Daily Sun talks about the success of the just concluded AIO conference, his agenda for the organisation, insurance penetration and other matters.
Excerpts:
Take us through your agenda as the president of the AIO
I set out a 5-point agenda to be accomplished during my presidency. The achievement of this agenda for the next one year will ultimately lead to the increase in penetration rate in Africa which is the overall objective of this agenda. The agenda focuses on: increased customer awareness, adoption of digitalisation, collaboration among markets, collaboration with governments and regulators; and increased level of consumer trust.
In 2019, insurance penetration rate in Africa stood at 2.98 per cent, whereas global average penetration rate stood at 7.23 per cent. Though Africa’s Gross Domestic Product (GDP) increased from $2.368 trillion in 2018 to $2.448 trillion in 2019, total direct premium written decreased from $69.46 billion to $68.2 billion. Also in 2019, while global premium growth was three per cent, Africa recorded a negative growth of -3 per cent.
Aside a few markets such as South Africa, Morocco, Kenya, Egypt, Malawi, Zambia and Ghana, no other market in Africa has up to one per cent penetration rate. I believe this trend must be reversed.
Post-conference agenda
I have started with the issue of consumer trust. This is a major barrier to the growth of insurance in Africa. Meeting up claims obligations by operators as and when due will address this issue.
Ironically, COVID-19 triggered awareness level as many became aware of the importance of insurance during the period. Efforts shall be made not only to sustain this momentum, but also to increase same by collaborating with various markets to organise sensitisation programmes that will ultimately lead to increase in consumer awareness.
Leveraging support you to drive insurance growth across Africa
Let me use this opportunity to thank everyone for the massive support I got during the investiture. The support is a vote of confidence in my ability and capability and I will leverage this to achieve the drive towards insurance growth across Africa.
Implementation of the outcome of deliberations on AFCFTA across member countries
Other News
The African Insurance Organisation is like a microcosm of African Continental Free Trade Area (AFCTA), as it were. Don’t forget that one of the cardinal objectives of AIO is to promote inter-African corporation in insurance business. So, with AFCTA, the removal of trade barriers will lead to increase in intra-African trade and this will lead to increase in demand for insurance across Africa. My responsibility is to engage all the stakeholders in the insurance sector in Africa to take advantage of this initiative so as to grow the sector.
Take home from the just concluded AIO conference
To the glory of God, the conference was a huge success by all standard. First, we had the privilege of having in attendance the nation’s number one and number two citizens.
The President and Commander in Chief of the Armed Forces of Nigeria, His Excellency, President Muhammadu Buhari, declared the conference open. Also, the Vice President, Professor Yemi Osibajo, was present at the closing gala dinner. The Minister of Finance, Mrs. Zainab Ahmed as well as the Governor of Ondo State, Arakunnrin Rotimi Akeredolu, were also there among other dignitaries. This is no doubt is a big statement for the Nigerian insurance industry.
Also, despite the COVID-19 pandemic, we had representatives from 44 countries that were physically present.
In addition, the quality of the papers that were presented was extraordinary. To crown it all, the programme went smoothly without any hitch whatsoever.
I interacted with many of the delegates during the programme and I have equally spoken to many after they arrived their various destinations and the consensus was that this conference remains one of the best.
Cross-border collaboration on insurance businesses
I will encourage markets across the region to share information and experience among one another. Such information can be very useful and the receiving markets can use them to further advance the growth of insurance in their domain. One thing that has been missing in markets across Africa is absence of collaboration among different markets. Collaboration among markets will lead to growth as this presents an opportunity to share experience among markets. We shall work with various markets to enable us achieve this goal. A strategic approach that takes into account the unique characteristics of each market, different growth prospects will be adopted and mechanism for collaboration will be worked out.
Low insurance penetration in Africa The 5-point agenda of my administration, if well pursued are to achieve one thing, and that is to increase the rate of insurance penetration across Africa. AFCFTA is a good initiative, and it is supposed to be a game changer. Among other things, markets and economies across the region will be reshaped leading to the creation of new industries and the expansion of key sectors. Insurance markets across the region will benefit from this pact and this will consequently increase the penetration rate.
Achieving set targets
By the grace of God, I shall work towards the achievement of the agenda. In any case, wherever I stop, having laid a good foundation, I will expect my successor to continue from there in the interest of insurance sector in Africa.
Nigerian AIO president
I am very excited about this because in the first place, it is a big honour for Nigeria. The last time a Nigerian occupied this position was 21 years ago.
With this position, there is an assurance that Nigerian flag will be flown at the very top level at least, for the next one year. Secondly, this new position presents me with an opportunity to come up with some initiatives that will change the narrative about the practice of insurance across Africa. It presents an opportunity to correct some negative conversations around insurance practice in Africa as well.
