Insurance

Rate cutting shaving sales of digital insurance products

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Chuks Udo Okonta

Insurance operators have expressed sadness on how menace of rate cutting, has made it impossible for them to sell their policies through digital process.

According to some of the operators, the sale of policies especially motor insurance on digital platforms has been very difficult as the same policies are purchased at the open market below the regulated price.

According to data obtained from the Nigerian Insurers Association (NIA), insurers only generated N1.50 billion from e-channel, 0.36 per cent of the N413.85 billion, gross premium accumulated in 2018.

NIA noted that insurance brokers generated N220.89 billion, agents N107.83 billion, which was 26.05 per cent; direct sales brought in N29.01 billion, 7.01 per cent and bancassurance yielded N30.37 billion, 7.34 per cent.

Managing Director, SUNU Assurances Nigeria Plc, Samuel Ogbodu, who expressed optimism that the issue of rate cutting will be stemmed by the portal under the management of the National Insurance Commission (NAICOM), noted that insurance companies will have no choice than to charge appropriate premium rates.

“As we speak, the regulator has come up with a NAICOM portal. We the operators all jubilated because if you cut the rate from next year, when you are reporting to NAICOM, NAICOM will know that you have cut rate. So you have no choice than to charge the appropriate rate. We thank NAICOM for coming up with the portal, it will really help the industry and rate cutting will be a thing of the past,” he said.

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