Insurance bounced back from their poor outings to advance their position on the 2024/25 NPFL log.

The hosts went into the match, played behind closed doors at the Samuel Ogbemudia Stadium, Benin, sitting at the bottom of the league table.

Though, the visitors dominated the game, hoping to replicate the victory recorded in their last away match against Nasarawa United, Insurance showed resilience and redeemed themselves from the poor run in the league.

Insurance found the net in the 18th minute through Nazir Mohammed, following a well-taken right-footed shot that caught the visitors’ goalie, Nurudeen Badmus, napping.

Kwara United, however, restored parity five minutes later as a result of a defensive blunder by the Insurance’s Emmanuel Ugwu.

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Mohammed recorded his brace in the stoppage time of the first half to put Insurance ahead again, 2-1, into the break.

The Ilorin boys struggled to search for an equaliser in the second half, but Austin Ogunye’s strike in the 85th minute took the scoreline to 3-1, denting the United’s hope of pushing for a draw.

In the post-match interview, Insurance Coach, Greg Ikhenoba, standing in following the resignation of Monday Odigie, commended his boys for the victory.

He promised to work more on the team’s scoring abilities ahead of their Match Day 14 against Nasarawa United in Lafia.

According to Ikhenoba, the team is work in progress and will improve on their chances in subsequent matches.

On his part, Coach Tunde Sanni of Kwara United regretted that his boys fell short of their performance.

“Kwara United play better than this,” he said, insisting that the visitors did not deserve the heavy loss.

“This is a bad day in the office. We came in yesterday (Friday) and we cannot say we were fatigued. We just lost concentration, if not, we cannot lose heavily like this.

“Since the start of the season, we had hardly conceded two goals, let alone three goals,” Sanni said.

Source: NAN

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As last year drew to a close, the 58 insurance firms in Nigeria under the umbrella of the National Insurance Commission (NAICOM) served notice that minimum Third-Party subscription for motor vehicles would no longer cost N5,000 but N15,000 beginning from this New Year. Some years ago, they charged N1,000 as minimum payable on motor insurance.

Contrast with the current debate on the social media about MultiChoice serving a notice of increase on GOtv and DSTV subscribers. The increase ranges from 16 per cent to 22 per cent. Despite this, people are shouting BLUE MURDER! Subscribers are calling for the cable TV firm to be skinned or beheaded, saying MultiChoice would not dare such in its home headquarters, South Africa. Last time MultiChoice tried it, the matter went as far as the National Assembly.

Legislators need to make a law to make motor insurance deregulated, optional or non-exploitative. They would be writing their name in gold.

This same National Assembly now looks the other way with the new insurance premiums. What is the cable TV’s 22 per cent increment, compared to 200 per cent by NAICOM? What insurers have done is brazen and indecent! To increase the minimum Third-Party motor insurance to 300 per cent is not only unreasonable it is draconian. It is an act of impunity. It is extortionist, insensitive, inconsiderate, untimely, ill-advised, selfish and self-serving. It panders to the unbridled greed of industry operators. The brazenness is insulting. In short, the hike is highly inconsiderate, especially in this era of scarce and expensive fuel and an economy still reeling from the effects of the COVID-19 pandemic.

Yet insurers blame the N10,000 increment on “current economic realities.” Not acceptable!

There are an estimated 13 million vehicles in Nigeria, of which only some 3 million have been captured in the insurance net. Instead of seeking ways to lure the noncompliant 10 million vehicle-owners to buy into insurance, insurers want to milk conformists to death. Where will patrons accommodate this increase, in a country with a minimum wage of N30,000?

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Of course, those earning minimum wage do not own vehicles. However, they use transportation. When the prices of vehicle inputs like fuel, tolls and spare parts become costlier, vehicle owners simply transfer them to commuters through higher fares. Adding a costlier insurance to the motor value chain amounts to subjecting vehicle owners to double, nay multiple, jeopardy, with the spiral effect translating to higher transport fares and costlier freighting fees.

Imagine if other elements in the motor driving particulars too decide to follow suit. It means that drivers and owners would pay three times on:

1. Vehicle Licence
2. Road Worthiness
3. Hackney Permit
4. Drivers Licence
5. Customs Papers
6. Tinted Glass Permits (which the Police Force deserves kudos for waiving) and other council and business locations tickets.

Someone said, “Insurance is the sale of promises. The ‘customer’ pays money now; the insurer promises to pay money in the future if certain events occur. Sometimes, the promise will not be tested for decades.” Sometimes the promise will not be even tested forever! In fact, only about 15 per cent insurance subscribers ever bother to make accident claims. The greater proportion of claimants comes from corporate policyholders. Thus, the insurance firm is the greater beneficiary in the relationship because the individual motor policyholder would just lick his wound and settle the bills jejely.

Everyone knows that the Third-Party insurance on vehicles is just to fulfil all righteousness –a legal requirement with which transport owners must comply. In Nigeria here, they refer to it as, “Let-My-People-Go Insurance,” or “Let-Me-Pass Insurance.” Third-Party is the paper drivers obtain just to satisfy the police. That’s all!

In case of accident or damage to Third-Party vehicles, insurance customers hardly bother to engage themselves in the stress of filing claims. The red tape and bureaucracy is so organised as to be stressful and time-wasting. Therefore, claimants simply pay from their pockets. Commercial bus and employed drivers are a common sight, kneeling and prostrating on the ground for the mercy of those whose cars they bash. Hence, the insurance firm reaps from doing NOTHING!

Since owning personal cars for over two decades now, I have been involved in accidents. Not once have I made a single claim! In fact, apart from an Insurance Broker in my church, no one I know has EVER made a claim. Not one! In fact, late last year, someone in my neighbourhood had his SUV crushed by a falling container. The owner of the offending trailer came privately to plead for the victim to accept N7 million for a vehicle worth N12 million. Family members told the victim to thank God for surviving the ordeal and accept the money. That is how we roll.

As of 2019, the Nigerian industry ranked 62nd in the world with $1.64 billion premium. That makes it an industry worth some N1.2 trillion. In 2021, the unaudited Insurance Industry performance in Nigeria showed that insurance firms made a gross income of N630 billion, and posted N238.05 billion as net expenditure. Talk about a fertile cash cow.

Insurers benefit colossally from the statutory laws making vehicle insurance cover mandatory for cars, trucks and motorcycles. The Insurance Act 2003 mandates all motorists to carry the minimum of a Third-Party Motor Insurance Policy. Section 68 of the 2003 Insurance Act stipulates: “No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act.”

The law varies in the US, where most states, require vehicles to carry motor insurance. However, there are two US states where it is not mandatory –Virginia and New Hampshire. Countries like New Zealand, Saudi Arabia and Manila do not require a compulsory insurance for vehicles to ply the roads.

Time has come to break up this cartel. With NAICOM calling the shots, it amounts to a monopoly, which should not hold in a free enterprise and deregulated economy.

It is compulsory in Britain too, hence, we see that mandatory insurance is part of our colonial heritage. This colonial heritage must go now. As our colonial hangover, motor insurance is being weaponised for inordinate extortion, unbridled greed and excessive profiteering by insurers operating under a NAICOM cartel.

Time has come to break up this cartel. With NAICOM calling the shots, it amounts to a monopoly, which should not hold in a free enterprise and deregulated economy. NAICOM is operating like a cartel. We consumers reject being milked by this privileged cartel. Nigeria should make insurance OPTIONAL. This Ninth National Assembly or the coming Tenth National Assembly should make this a matter of urgent public importance. Legislators should change the law to deregulate insurance or scrap this motor insurance law. The NASS should tweak the Insurance Act. Expunge, reframe, rephrase, rewrite restructure or remove that part of the law that makes it compulsory for vehicles to carry an insurance paper to travel the roads. If vehicles MUST be insured, the law should permit no more than a marginal increase, going forward. Motor insurance premium should take a cue from MultiChoice – no increment should be over 20 per cent.

Legislators need to make a law to make motor insurance deregulated, optional or non-exploitative. They would be writing their name in gold.

*Oboagwina is an author and journalist, and may be reached via: foboagwina@gmail.com

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“Put it before them briefly so they will read it, clearly so they will appreciate it, picturesquely so they will remember it, and, above all, accurately so they will be guided by its light.” – Joseph Pulitzer

The History of Insurance Throughout the World

Insurance has a history that can be traced to the ancient world. Many centuries ago, insurance developed into a modern business which protected people from various risks. The industry grew to become a lucrative one for many years and has been an important aspect of different levels of finance.

According to Andrew Beattie, in his 2021 publication titled The History of insurance: From ancient Babylonia to the American Colonies published in the New York City-based financial news site – investopedia.com he succinctly captured the history of insurance as highlighted thus:

✔   What some consider the first written insurance policy was found on an ancient Babylonian monument.

✔   In Medieval Europe, the guild system emerged, with members paying into a pool that covered their losses.

✔   In the 1600s, ships sailing to the New World would secure multiple investors to spread the risk around.

✔   The horrific Great Fire of London in 1666 gave rise to fire insurance.

✔   Life insurance became more widespread and affordable after the invention of mortality tables, which helped predict longevity.

Year after year, it has become clearer that the protection of people and their assets is critical to building sustainable, resilient, and inclusive development. This was well affirmed by the United Nations Social Development Goals (SDGs).

The origin of insurance itself was about concerns on the need to solve critical needs of the people whose quests were protection for their families, livelihoods, and shield from unforeseen financial blows.

The resultant effect of experience recorded globally from the Covid-19 pandemic showed that unexpected financial shocks can reverse development progress.

According to the World Bank, Covid-19 will lead to between 119 and 124 million “new poor” in 2020. Only countries with stronger safety nets are, however in good shape.

Insurance, as a risk protection mechanism, plays an important role in nine of the SDGs: No Poverty, Reduced Inequalities, Zero Hunger, Good Health and Well-being, Gender Equality, Decent Work and Economic Growth, Industry Innovation and Infrastructure, Climate Change and Partnerships for Goals.

Insurance in Nigeria

The Nigerian Insurance sector was described in Nigeria’s development plan, Vision 2020 as “A grossly untapped opportunity”. That apt description of the sector showed that the insurance sector is a beautiful bride yet to be discovered by a wandering groom at large. With approximately 70% of the 200 million strong population living below the poverty line, over half of the population living in rural areas, 52.5% of adults being completely excluded from financial services, a growing economy amidst higher inflation, social unrest, poor basic public infrastructure, and corruption concerns, Nigeria offers great opportunities and challenges for virtually any type of business.

Although, Insurance in Nigeria can be traced back to the 20th century when the country’s economy was just surviving on agriculture. These were the days when merchants would need to transport their cash crops to Europe and reduce the risk of such transportation. This was responsible for the dominance of marine insurance in Nigeria at that time.

Despite its importance for economic development, the gross premium collected by insurance companies in Nigeria is about 1.9 billion United States Dollars compared to the 3.8 billion United States Dollars collected in South Africa.

In the United Kingdom, the insurance industry contributes about 20% of the total GDP of the country. In South Africa, the insurance industry contributes 17% of the total GDP and in Kenya, the insurance industry contributes 3.4% of its nation’s GDP.

Sadly, after 62 years of independence, the Nigerian insurance industry is still crawling with dual problems of little knowledge of its values and acceptance by the populace mostly ignorant of the values of insurance. These are the key determinant of mass patronage, growth of premium generation and meaningful contributions to the Gross Domestic Product (GDP) of the economy.

Issues militating against Insurance Penetration In Nigeria

Doubts about Insurance Companies

The response that follows the mention of insurance or insurance companies to an average Nigerian is predictable. Negative reaction and lukewarm attitude are the kinds of feeling that comes with an invitation to insurance policies. This informed the low patronage and acceptance of insurance companies operating in Nigeria.

This untoward reaction and attitude by Nigerians may not be unrelated to the poor attitude of the insurers towards the often repeated chorus of refusal to pay claims. Some insurance companies through over time had developed a bad reputation for defaulting in the payment of claims. This unfortunately grew to become a negative public emblem that hanged beside their corporate identities. Invariably, industry and the nation’s depleting GDP are big losers.

Hostile economy

At this moment, insurance companies are not willing to invest the premiums in long-term instruments because of the fear of inflation built up over several years due to fiscal indiscipline and high inflation. Everybody knows in economics that short-term investment can only bring lower returns. With these trends, insurance companies will only be able to run on the spot;  underwriters would not be able to pay claims. Only a viable economy that has a robust business environment can allow insurance companies to thrive.

Trust issues emanating from hidden Clauses

Issues of hidden clauses in policy documents which often heightens public suspicion about the insurance business in Nigerians is a cause for concern. And players need to simplify and make insurance more desirable by the geeral public.

Other concerns…

Other key issues affecting the speed of insurance penetration in the country include inadequate access to Information Technology, weak regulatory framework, lack of skilled personnel and poor awareness of insurance services by the prospective assured, among other factors.

Recently, while counselling players in the industry, the Chairman of Heirs Holding, Mr. Tony Elumelu, at the 60th anniversary of the Nigerian Council of Registered Insurance Brokers (NCRIB) challenged the operators on the need to be consistently professional. He also echoed some of the critical issues affecting the industry’s productivity.

 “In redefining the practice and practitioners in the broking profession, NCRIB should lead the war against many unethical practices that have been identified as the bane of the industry for years. These include premium rate cutting, delayed premium remittance, unremitted premium, overloading of premium, returned premium, fake documents, fraudulent claims, collusion to defraud, mis-selling, unhealthy competition, misrepresentations, manipulation of policy conditions, self-enrichment methods disguised as marketing expenses and many more”, Mr. Elumelu.

Can we Demystify Insurance, Please?

Insurance will only take its pride of place as big contributor to the Nation’s Gross Domestic Product (GDP) as it’s applicable in other jurisdictions when all stakeholders in the risk ecosystem are deliberate, consistent and methodical in simplifying what insurance is all about in deed and act. First, there must be a unanimity of purpose to bake insurance and make it BIG enough for all to benefits from the expected windfall.

I propose that insurance should be presented as a Lifestyle add on that adds significant value to enhancing life and living.  With creative and interesting story-telling narratives delivered with moving and crisp visuals delivered across digital and traditional platforms with strong orchestration and amplifications, there is bound to be a TOMA as end product which is all that is needed for the immense opportunities in the sector to be unleashed. (To prepare this paper, I did a mini survey among 10 young staff in my department, mostly comprising the millennial & GEN Z demographics and the findings were insightful and revealing.)

Urgent Need to Change the Ugly Conversation Around Insurance

It is on record that there was an attempt by NAICOM, in collaboration with NIA, to provide a better brand positioning for the insurance industry in the past. To improve the penetration levels, NAICOM launched the Market Development and Restructuring Initiative (MDRI) in 2009. All the industry wide rebranding media campaigns which commenced in 2018 ended without much success, to address the negative perception of insurance by the public.

Role of Media in deepening insurance inclusion:

The mass media are vehicles and instruments for the socio-economic transformation and re-engineering of any society. Especially for a developing nation like ours, the media is required and indeed, is fundamental for the penetration of important national agendas.

The most prominent and widely known media of mass communication in contemporary Nigeria are; newspapers, magazines, radio, television, and digital communication platforms.

Media is a strategic vehicle for dialogue and acceleration of inclusive growth in any society. The media can continuously set agenda for the public to know more about the importance of insurance and to accept different risk protection values inherent in modern insurance policies.

As an agenda-setting mechanism, the media can be effectively used to change public orientation and achieve a pre-determined objective of making insurance valuable, acceptable by the general public.

There is no doubt, this moment is the most critical time for a more germane approach to how to communicate the essence of insurance to Nigeria’s huge population if we are truly concerned about achieving measurable and optimal penetration and reasonable acceptance.

NEWSPAPER

I challenge Nigeria’s newspaper outfits to tap into the unexploited gap created by poor insurance penetration in the country to be the champion to rescue the insurance industry from its woes.

How?

(i) Dedicated reportage to consistently make the industry attractive to the uninsured most of whom are in the nooks and crannies of the country. Issues like diversity, inclusion, opportunities for sustainable happiness, ability in disability and business insights should be focused on.

Newspapers should create ample space for insurance editorial content at a pocket-friendly rate for willing insurance companies

Newspapers should celebrate leading insurance companies that are well-positioned, professional truthful and being consistent in premium payment. This can come in the form of an independent insurance award. Invariably, this can be designed as an additional enterprise with patronage from stakeholders and operators in the industry.

RADIO

Radio is very germane for a mass mobilization of a huge population. Radio is an “infotainment” media platform, vital information, and entertainment flow through its airwaves.

Particularly, radio stations are used when policymakers have critical reform information to pass to the people. Issues like disaster response, community resilience, disaster, flood management, mental health crises communication, traffic diversion and more have been managed using the radio as a medium of mass communication.

There is no better time to explore the radio medium of passing messages to create and disseminate consistent messages about insurance and its values.

I suggest that our government, non-governmental organizations, and insurance regulatory bodies can commission Radio Drama specialists to design development communication themes, using drama as medium that targets issues affecting insurance penetration in Nigeria.

ANIMATION FILMS & SHORT SKITS

The deployment of animated short films and skits is quite strategic in setting agenda for the people. Special characters can be created and themed messages to convert many redundant, uninsured, and uninformed populations to take action by enrolling on an insurance policy.

DIGITAL/SOCIAL MEDIA TO THE RESCUE

To an undiscerning mind, Insurance and social media may sound like unusual partners. This may be a very wrong assumption.

According to the Global Trends Study 2017, the insurance industry invests an average of $124 million per company in artificial intelligence (AI). That’s a massive $54 million more than the average of all surveyed industries.

According to 2022 studies, there are 2.91 billion active users on Facebook. The largest age group on the platform is between 25 and 34.

Also, according to 2022 studies, there are 810 million active users on LinkedIn. The largest age group on the platform is between 25 and 34. While this has historically been a platform for older generations, it is starting to move toward millennial, likely following the demographic as they grow to take on a larger portion of the job market. This is a great platform for B2B and could find highly targeted audiences when working with paid ads.

Social media marketing is a great way for insurance companies to unleash their digital marketing plan. A study has revealed that customers increasingly spend more time on social media. If that is the case, social media platforms are key for insurance policy marketers and the general public

Guide To Market Insurance on social media

*Focus on Creating Quality Content

*Share Customer Testimonials

*Highlight Your Brand Values

*Choose the right social media platforms

 Social media platforms are great tools for insurance agents to reconnect with past customers and engage with prospective ones. These platforms promote sales, give insights about different policy types, and offer advice to establish yourself as a reliable sector authority. This is also a great place to share news about closures or community events and sponsorships.

The insurance industry is already hectic, so you don’t want to be spinning your wheels on social media. When it comes down to it, using social media for community building may not cost money.

The following are the six most predominantly used social media platforms for insurance messaging – Facebook, LinkedIn, Instagram, Twitter, YouTube, Tik Tok

INTERNET OF THINGS

Connected Internet devices can be a veritable tool for the dissemination of cultural and attitudinal reorientation. Insurance companies can market insurance to the masses through this digital innovation. More than in any era, we are now in the age of democratization of information through various digital devices at our disposal.

The IoT brings internet connectivity, data processing and analytics to the world of physical objects. For consumers, this means interacting with the global information network without the intermediary of a keyboard and screen (Alexa is a good example).

According to the United States of America, the insurance body – The National Association of Insurance Commissioners (NAIC) IoT-connected insurance uses the data from internet-connected devices to improve the understanding of risks. Advances in IoT can improve productivity, the overall profitability of the business, and the risk profile of the portfolio. Through IoT, insurers can better connect with consumers adding important touch points in particularly sensitive phases, like acquisitions and claims. Moreover, IoT advances can be realized for the full range of products and lines of business, from commercial to life, property and casualty and health.

Call for a Collaborative Communication Campaign

There is a need for a deliberate collaborative campaign for national awareness about the importance of insurance. A dedicated jointly owned media vehicle should be created by all stakeholders to serve as a news agency on insurance content shared with other media hoses.

Regulatory bodies in the Nigerian insurance industry are expected to partner with the Nigerian media industry towards creating a diverse and inclusive newsroom; that has content development and coverage strategy that build audience trust in insurance and provides for a better representation of different societies.

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