Head, Corporate Affairs, Leadway Assurance Company Limited, Bunmi Adeleye, (5th left) with members of National Association of Insurance and Pension Correspondents at the event.
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Chuks Udo Okonta
To ensure journalists reporting insurance business acquire more knowledge on underwriting practice, the leading insurer in the country, Leadway Assurance Company Limited, had organised a workshop for members of National Association of Insurance and Pension Correspondents (NAIPCO).
The workshop which held last week in Lagos, exposed the media executives to outlook for insurance in 2020; agriculture Insurance; micro Insurance and claims settlement processes.
Principal Manager, Leadway Assurance Company Limited, Akinyemi Alebiosu, who spoke on outlook for insurance in 2020, said digital disruption, alliances and recapitalisation will redefine insurance business, grow the industry to prominence in the financial service sector space as well as increase insurance adoption and penetration in the country.
He noted that incumbent underwriting firms can no longer rely on organic growth or internal innovations for survival in the face of digital disruption, saying, the winners would be those who can form strategic alliances with innovative startups.
Alebiosu charged insurers to form ally with Insuretech and consolidate their peers, stressing that, ‘a rapidly changing industry will require unprecedented deal-making skills, such as; AXA and Jumia, Leadway and GTBank, among others.’
Stating that disruption from new technologies is a given, as some technologies are gradually coming up to offer insurance services, thereby, displacing the services of the traditional operators, insurers, he added, need to know how to deploy the right technology for the right purpose or risk being left behind.
He made the example of Autogenius and Lemonade who offer full online insurance services, stressing that, the era of loyalty to a brand is fast fading. ‘Customers have no loyalty these days, what they are after is to get the services they want at the right time without any delay,’ he pointed out.
In the future, he said, relationship or ability to pay claims will no longer be a selling point, as virtually all underwriters then will and can pay claims, but that, what will sell a brand is its ability and how easy for customers to buy a product and claims payment.
The ongoing recapitalisation in the industry, he said, will ensure financial strong and competitive firms emerged post recapitalisation, which would give companies the financial strength to underwrite huge and lucrative risks, thereby, limiting risk flight abroad.
This, according to him, will increase the chances of insurers to pay claims promptly, have the needed technical expertise to launch innovative products, while increasing insurance adoption and contribution of the industry to the Gross Domestic Product (GDP).
The traditional approach of selling protective products , according to him, is inadequate for the insurers of the future, adding that, growth will come from, innovate products, New Services based models and a greater focus on prevention Investment Income.
Ngozi Ochei of the Life Business of Leadway Assurance Company Limited, while making presentation on ‘Leadway Microinsurance Products’ , said its Personal Accident Cover comprises of Basic and Silver Plans.
The Basic Plan, she said, is being sold at N1,250 annually with Death benefits to the tune of N250,000, Permanent Disability of N250,000 claims and Medical Benefits of N50,000. On the Silver Plan, she said, the cover goes for N2,450 premium, while the policyholders is entitled to Death Benefits of N500,000, Permanent Disability of N500,000 and medical expenses of N100,000 depending on the status of the accident victims.
On its Motor Microinsurance Policy, she said, the policy is being sold to vehicle owners at N10,000 annual premium as its has Third Party coverage of N1 Million and Own Damage to the tune of N250,000.
Similarly, she stressed that its Hospital Cash Policy is designed to provide financial benefits for hospitalisation arising from accident or illness.
Stating that, the product is meant for people under the of 65, she added that, the cover is limited to Government, State and Mission hospitals, even as this product has, Premium Basic, Premium Class and Premium Plus varieties.
Adebayo Olubolajo of the Agriculture Insurance Department of Leadway, said, insurance is essential in Agric value chain because of the risk exposure in the agricultural sector. Currently, he said, Agric insurers have products that covers virtually the entire Agric process which has some how limit the impact of risks on players in the sector.
‘Insurance remains the succour upon which business, especially, agricultural business will need for continuity and profit,’ he pointed out.
Fatai Kareem of the Life Business of Leadway Assurance, had earlier spoken about the importance of life insurance cover, while highlighting the documentation required before a death benefit is paid to the beneficiary of the deceased. He charged Nigerians to engage the service of a lawyer to guide them when taking life insurance products, adding that, such legal personnel would be able to guide them on writing of will and how to process a Letter of Administration from the probate registry in a situation whereby the deceased died interstate.