By ZAKA KHALIQ
The inability of most of the 58 insurance companies in the country to commit fund to the proposed N300 million insurance rebranding project is stalling the initiative, LEADERSHIP exclusively learnt.
The project, which was to start initially in October, 2016, could not commence, hence, the commencement date was shifted to the first quarter of the current year(2017).
However, lack of funding commitment from most companies, who are to commit a minimum of N5 million each to the project, investigation shows, will not allow the rebranding project to kickstart in the current quarter.
Industry observers had frowned at the timing of the initiative, coming at a time the industry is grappling with financial challenges, especially, with economic recession, that has impacted negatively on underwriting business, while some insurers see it as a duplication of insurance awareness projects their companies are already embarking upon. Moreover, with companies making recapitalisation moves, some insurers believe parting away with such huge money could impair their liquidity.
Most companies contacted by Leadership revealed that they are yet to commence the process of releasing their portion to the fund, even as most corporate communications managers were left in the dark over the role of their firms in this project, a development they frowned at.
Industry sources said another key challenge to the project was the inability of the Insurers Committee, who conceived the project, to meet this year. However, there are insinuations that the committee will soon meet at its proposed retreat in Abeokuta, Ogun State, later in this month or next month to discuss the funding challenge and how to address it.
Leadership exclusively gathered that plans are ongoing to ensure that the project commence towards the end of the second quarter of the year, while there are moves to persuade companies to commit to the project.
Speaking exclusively to Leadership at the weekend, the director-general, Nigeria Insurers Association(NIA), Mr. Sunday Thomas, said, though, funding is one of the factors delaying the commencement of the project, the inability of the insurers committee to meet in the current year is another challenge, adding that the committee will soon meet to iron out the grey areas to bring the project to fruition.
According to him,”The modality of the project is currently being worked out. Funding is one of the challenge and also the insurance committee has not meet this year. They are supposed to meet in a retreat earlier, but the meeting was postponed for logistic reason.”
Earlier, the president, Association of Registered Insurance Agents of Nigeria (ARIAN) had called on proponents of the N300 million insurance rebranding project to first tackle key issues that led to public disdain on insurance business, before embarking on this mission.
He added that efforts made by the drivers of the project would amount to futility, if issues like the internal structure of the agency system; remuneration of agents and review of brand strategy of agency marketing are not properly addressed.
Gbadebo, who also expressed misgivings over exclusion of the association in the project, urged drivers of the project to first rebrand internal mechanism of insurance practice, before embarking on the proposed project.
According to him, the allegation that conduct of agents in the past contributed to poor image of the industry, should prop drivers of the project to engage agents in remaking the image presently. He stressed that since agents are field workers, they should be brought in as change ambassadors in the new concept.
The insurance rebranding project is an innovation of the Insurers’ Committee, comprising of the managers of the 58 registered insurance companies as well as the National Insurance Commission (NAICOM), aimed at deepening insurance acceptance and penetration through massive insurance education and awareness across all states of the federation, even though, Lagos and Abuja are expected to be the pilot states.
The Managing Director, Leadway Assurance Limited, Mr. Oye Hassan Odukale, said the first phase of this multi-million Naira project will utilise the online medium such as Facebook, Twitter, among other online platforms to create awareness on the need to subscribe to insurance products and services, following the rapid increase in the number of Internet and online users in the country.
This would later be followed by jingles on broadcast media, while also utilizing the print and bill board mediums.
Leadership
