Insurers lose billion of naira to poor KYC on motor business

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Chuks Udo Okonta

Insurance operators’ inability to effectively know their motor insurance customers is costing them huge premium loss, Inspenonline can report.

According to experts, having complete data of motor insurance policyholders would enable insurers communicate directly and also sell other policies to them, thereby grossing more premium.

The experts who expressed worry over the distrust between insurers and their intermediaries – brokers and agents, leading to hoarding of data, said the menace has left sour taste in the industry as most motorists complain of lack of communication between them and insurers.

They noted that though the reversed guidelines for insurance, reinsurance and intermediaries stated that insurers should remind policyholders of renewal six months to the expiration of their policies, insurers are unable to carry out the mandate owing to lack of data on the policyholders.

The experts expressed belief that having full data of the 3.11 million motor policies, captured on the Nigerian Insurance Industry Database (NIID) would enable insurers sell other unique insurance policies to owners of the vehicles.

According to them, having knowledge of motorists with just third party cover, would assist insurance operators in marketing personal accident policies to them as the third covers they have do not protect them.

The experts also submitted that having full data of motor insurance policyholders, would aid after sales services and intra personal relationship between insurers and policyholders.

They implored the National Insurance Commission (NAICOM) to looking into the issue of distrust between insurers and intermediaries and also charged insurers to abide with the Know-Your-Customer (KYC) policy.

The experts also tasked insurance operators to always felicitate with their policyholders, stating that just like the banks, insurers should celebrate with their policyholders on their birthdays, Christmas; new year and other memorable events.

They further suggested that necessary insurance education tips should be pass to policyholders through their contacts, a development that would boost insurance awareness.

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