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Chuks Udo Okonta
It was a great delight when I got my motor insurance policy renewal notice from my insurer.
I was was happy because for the past 15 years that I have being insuring my vehicles, I have never received renewal notice. The sad development led me to changing companies to ensure I enjoy privileges like; renewal notice; birthday wishes; trends in the insurance space; other products I can buy and more.
When I moved my motor policy to the current insurer, I told them that I am not just insuring with them, but want to know how they treat their motor policyholders.
They promised to surprise me of which they did by sending the renewal notice to me.
How motor policy can drive insurance growth.
Showcase of policies to motor policyholders.
Insurance companies can leverage data of motor policyholders to promote other policies that can appeal to such individuals.
This can be done by showcasing the policies through renewal notices, birthday wishes and trends sent to policyholders.
*Customer care
Insurance companies can also promote their businesses through using the customer care to check on policyholders wellbeing.
While checking on policyholders, customer care can showcase their companies products to the policyholders.
*Birthday wishes
Most insurance companies unlike their counterparts in the banking and telcos do not relate with their policyholders during their birthdays.
While sending birthday wishes, insurance companies can also showcase their flagship products to motor insurance policyholders.
*Promotions
Insurance companies can drive their operations through motor centered promotions.
According to the National Insurance Commission (NAICOM) motor insurance contributed N114.8 billion to the over N1 trillion total insurance industry premium in 2023.
This can be doubled is the industry utilises all available opportunities available in the motor insurance scape.
Statistics from the Federal Road Safety Corps (FRSC) and the Nigerian Insurance Association (NIA) indicated that only 25 per cent of vehicles on the road in Nigeria were insured in 2023.
The country’s low motor insurance underwriting is attributable to a number of factors, including inflation, the removal of fuel subsidies, and the depreciation of the local currency. The difficult business environment and rising living costs have driven citizens to drop insurance from their list of priorities.
The tripling of the motor third-party liability premium from 5 000 NGN (3.1 USD) to 15 000 NGN (9.4 USD) in 2023 has also led to a decline in underwriting, despite it being compulsory in Nigeria.
