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Chuks Udo Okonta
The tough economic situation occasioned by the increase in price of fuel and other government policies is hitting hard on retail insurance business, Inspenonline can report.
Investigations by Inspenonline revealed that most insurance companies are witnessing drop sales on retail products due to the tough economic situation in the country.
The Managing Director Cornerstone Insurance Plc Stephen Alangbo, said retail insurance business at this time has being challenging, adding that the economic situation has forced people to prioritize their needs.
He submitted that the situation is also preventing people distributing retail insurance products from reaching more people due to high cost on transportation.
He said though companies are reaching people through digital channels, but it is not as effective as physical contact which is more effective in driving retail operations.
On how insurance companies can remain afloat amid the economic challenges, he called for strict enforcement of compulsory insurances, stating that insurance is mostly needed in times like this.
He also submitted that this is the time for insurance companies to esteem and project claims payments, stressing that irrespective of the times, when people read and see people making claims on lost properties, they would be stimulated to buy insurance.
The Cornerstone Insurance boss, also spoke on the need for insurance companies to demonstrate more activities on Corporate Social Responsibility (CSR), stressing that when the economy rebounds, people would identify more with companies that supported them when they were in need.
He said the challenging economic situation would impact more on insurance companies that are trying to build retail clienteles, adding that companies with large retail clienteles would still have most of their policyholders remaining with them as they wouldn’t allow the impasse debar them from their targeted benefits.
The Managing Director Universal Insurance Plc Ben Ujoatuonu, said it is a trying time for retail insurance business, stating that the income level of people buying retail insurance products is low as many of them live on a daily income.
He noted that given the level of economy, insurance is becoming very hard to sell to this class of people, not because they don’t want insurance, but they can’t help it.
“A loaf of bread is now N2,000 and a tuber of yam going between N6,000 to N10,000 and these people don’t make this kind of money, so if you are talking to them about insurance, they would be looking at you from the point of helplessness.
“It is not that they don’t appreciate the need to protect their lives and assets, but they can’t buy insurance. It is really affecting our line of business.,” he said.
On the way out, he said attention should be given to enforcement of compulsory insurances, which people need to buy by law.
He said this is the time insurance operators should be pushing insurance forward before the public through robust awareness creation, corporate social responsibility and prompt claims settlements.
He submitted that this is the right time to buy insurance as replacement of lost or damaged assets is difficult due to lack of money.
