Presumed weak capacity of players in the industry, international prejudice, the as well as lack of confidence in the sector constitute obstacles to insurance says Entreprise Trust
Stories: Anurika Nwachukwu
Enterprise Trust Insurance Brokers Limited has identified weak capacity, lack of confidence as obstacles to the development of the insurance sector in Nigeria.
Speaking exclusively to The UNION recently in Lagos, Managing Director and Chief Executive Officer, Mr Paschal Emeka Egeruo said that the presumed weak capacity of the players in the industry, international prejudice the biasness in the industry as well as lack of confidence in the sector are part of these obstacles.
Egeruo said that people always believe in what they see and insurance is an intangible product with a promissory note
“Insurance is an intangible product backed by a promissory note and people believe seeing is believing. People do not believe in the sector and this doubt arose in the past due to failures in the insurance system”.
He maintained that the white men who brought insurance into Nigeria did not believe that the black man was insurable as they had no regard for the blacks. The insurance policies taken were for the multinational corporations and the safety of their workers in Nigeria.The colonial masters didn’t put in any effort to develop the insurance sector, if they had done that before Nigeria’s independence then the sector would have been better developed by now and people might have more faith in it.
He also noted that Nigeria per capital income is among the lowest in world and this impairs on the people because they don’t always have enough for insurance.
“There has always been the issue of affordability. Per capita in this country is among the lowest in the world. The little you have, you have to manage just to make a living. The issue of under insurance, will continue except the social status of the people in Nigeria improves”. he said
Egeruo equally noted that in the past, insurance companies were not well capitalized and so many of the firms were not registered which led to the inability of these insurance companies to meet the need of the people.
He therefore urged government to be more articulate with their insurance reform as “the reforms which have been put in place are institutional reforms and not consumer reforms. These reforms are in form of corporate insurance, compulsory insurance scheme e.t.c.
Nigerians have not been well educated on the need for insurance as a part of their budget. Institutional reforms have only improved the liquidity of insurance companies. In rural areas there are no insurance companies and nothing is being done about this”. he noted
Egeruo asserted that government should create more awareness to the include the populace and not target only the rich but also the poor and urged insurance companies should also develop packages that are more attractive to the people “the government should create more awareness not just to the rich who are the target of most insurance companies, while the insurance companies should also develop packages which would make insurance policies more desirable to the people”. he concluded