Insurance

Don’t just sell insurance, sell a solution, expert urges agents

From left: General Secretary, Association of Registered Insurance Agents of Nigeria, Moses Itoya, Vice President, Kehinde Jegede and President, Olakunle Odewunmi at the event.

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Chuks Udo Okonta

Members of Association of Registered Insurance Agents of Nigeria (ARIAN) have been urged to know their customers, their needs and desist from just sell insurance, but sell a solution to clients.

The Managing Director, Mutual Benefits Life Assurance Limited, Rantimi Ogunleye, said this at the ARIAN 2020 Annual National Conference, AGM and Election in Lagos, adding that disasters abound, lives lost, and properties damaged without adequate insurance, therefore, agents should be Evangelists to provide solutions and fill the gap.

“It is estimated that about 3 million Nigerians having one form of insurance; this provides ample opportunity within the informal sector (representing about 60 per cent of the economy) which can be harnessed through personal-line insurance solutions,” he said.

According to him, in the last decade, the growth of the Nigerian Insurance sector has been driven largely by reforms, stressing that although there has been appreciable increase in premiums, especially in the post consolidation era, the sector remains primarily in a state of infancy particularly when compared to the Banking industry.
He posited that from a largely fragmented operating environment characterized by a weak regulatory framework, the industry has seen some changes that have shaped concentration levels and raised the sector capital cushion, thereby unlocking investment opportunities and enhancing the underwriting strength of players.

“From the perspective of the capital market, the insurance sector has underperformed the Nigeria All Share Index since 2009. It remains one of the least capitalized on the NSE, with less than 2 per cent of aggregate market capitalization.

“Inadequate capital base, poor investment strategy, dearth of human capital, weak performance, couple with poor public perception of insurance in Nigeria have adversely rubbed-off on the market pricing and valuation of insurance stocks,” he added.

He maintained that in the opinion of analysts, the management of most insurance companies have failed in their primary responsibilities of maximizing the wealth of shareholders.

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