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High rate of inflation is forcing most policyholders to discontinue their insurance contributions, Senior Lecturer, Department of Finance, Accounting & Economics, Lagos Business School, Dr. Ikechukwu Kelikume, has said.
Kelikume, who was the Guest Speaker, at Chartered Insurance Institute of Nigeria (CIIN) 2023 Fellows’ Event, held recently in Lagos, said this while speaking on the theme: ‘Managing Change in the Insurance industry in the Face of Uncertainty.
He submitted that most policyholders, especially those who subscribed to life products, having weighted what their investments will amount to, due to soaring rate of inflation, discontinue their contributions and explore opportunities in real estate, which has consistently showed some level of appreciation.
He charged insurance practitioners to innovate and seek new means to make insurance appealing to the public, stressing that the slogan “if you do not innovate you die,” is now a reality for operators in the insurance industry.
He posited that the choice to remain in comfort zones is no longer an option, adding that it is in the quest to move in the direction of digitising the insurance industry that the regulator – National Insurance Commission (NAICOM) released its statement of regulatory priorities in 2018 which aims at the development of a framework for the balanced adoption of technology driven innovation in the industry.
“This framework has since been adopted and in 2023, there is a strong move towards opening up of the insurance sector to reach the underserved through innovative tools,” he said.
Managing Director/CEO, Mainstreet Bank Insurance Brokers Limited, Pascal Egerue, who was a discussant at the event, said insurance practitioners must create an effective technological and regulatory template to shock and awake the Nigerian and African insurance market from lethargy.
“We must make our market to appreciate the huge potential in big data and to invest in appropriate technology to crunch same and use the outcome to unleash phenomenal growth.
“To the above we must add that the mission and vision of regulators must be re-evaluated and aligned to market growth objectives and strategies,” he said.
Egerue submitted that it is important for Nigerian Insurance professionals to begin to look into the future and start analyzing what the future holds for the Nigerian Insurance market.
He said insurance practitioners have a generational responsibility to rouse up Nigeria as the giant of Africa in real terms.
He also charged Fellows in the industry to play pivotal role in the onerous task and should be in the forefront of generating the momentum for break through initiatives through roles in corporate leadership, writing high quality books and journal articles that will address the critical posers identified by Dr Kelikume.
