Nigeria’s insurance coverage business struggling, solely 3% of Nigerians are insured — Agency — Each day Nigerian
Cube Cover, an insurtech firm, says Nigeria’s insurance coverage business faces a frightening problem, with solely three per cent of its inhabitants insured.
Its Co-founder, Samuel Ishie, through the firm’s model inauguration on Wednesday in Lagos, mentioned the problem leaves 218 million Nigerians weak to monetary shocks.
According to him, the business is grappling with low consciousness, belief deficit, and entry boundaries, together with affordability and accessibility.
“Low consciousness is a significant problem, individuals don’t perceive the advantages of insurance coverage, and even when they do, they don’t know how you can entry it.
“Many Nigerians can not afford insurance coverage premiums, and even when they’ll, they might not have entry to insurance coverage merchandise.
“A market survey conducted by Cube Cover found that 86 per cent of respondents preferred an insurance company paying for their bills, while 91 per cent paid out-of-pocket for medical expenses,” Mr Ishie mentioned.
Mr Ishie famous that the survey additionally highlighted a belief deficit, with many respondents expressing scepticism concerning the potential of insurance coverage corporations to pay claims.
To deal with these challenges, Deji Macaulay, the Chief Executive Officer of Cube Cover, mentioned the corporate inaugurated an progressive insurance coverage product designed to bridge the market hole.
According to him, the corporate’s product is designed to make insurance coverage extra versatile, accessible, and inexpensive for patrons.
“We are focusing on all people that doesn’t have insurance coverage. We are offering insurance coverage throughout the complete spectrum, together with SMEs, individuals in casual jobs, and merchants.
“We are leveraging technology and partnerships to increase penetration, particularly among low-income earners,” he mentioned.
Also, Elfrieda Ezenagu, the Company’s Service Delivery Manager, mentioned Cube Cover had partnered with cell networks, fintechs and well being suppliers, together with MTN, GLO, Airtel and Palmpay to make their product extra accessible to clients.
Mr Ezenagu additionally famous that the corporate plans to develop its providers to authorities employees by the National Health Insurance Authority (NHIA).
According to Mr Ezenagu, the costs for the insurance coverage begin from as little as N100, making it an inexpensive possibility for Nigerians.
Aisha Mumuni, the Chief Digital Officer at MTN highlighted the function of telecommunication corporations in shaping the way forward for insurance coverage distribution, citing Nigeria’s 27 per cent cell penetration fee and 210 million cell connections.
Mrs Mumuni emphasised the significance of accelerating insurance coverage penetration, noting that telecommunication corporations have the infrastructure and experience to achieve the general public.
She famous that MTN had partnered with corporations like Cube Cover to supply insurance coverage providers to its clients.
Similarly, Habib Kowontan, Group Head, Wealth Products at Palmpay, a fintech firm, emphasised the significance of partnerships in growing insurance coverage penetration, noting that Palmpay had served numerous insurtech corporations.
Also, Jumoke Odunlami, Chief Distribution Officer, AXA Mansard, burdened the significance of consciousness and training in growing insurance coverage penetration.
NAN
