Kindly leave a comment and share
Chuks Udo Okonta
As insurance products are sold and not willingly bought in Nigeria, the concept of referral would help greatly in enhancing sales of policies, for new buyers would continue to believe users of insurance more than the practitioners.
From researches conducted by experts, it has been revealed that buyers and users of insurance instruments possess and share better experiences of how insurance works.
As the insurance industry struggles to draw more people into the insurance web, operators should consider deepening the referral concept which portents a great leverage for the industry’s growth.
Referral concept should be integrated into the marketing and sales strategies and be enriched with handsome rewards.
Why referral
*Trust:
One of the draw backs of insurance growth is distrust on operators, which accrued from past behaviors of some errant practitioners.
To eradicate this menace, the insurance industry needs new spokespersons, which referral concept perfectly fits in.
Users of insurance products acting as new voices for the industry would bring a fresh air as the public would rely more on testimonials of users that insurance practitioners.
*Perfect education:
The referral concept would enable users of insurance, market products in a simple way to prospective policyholders. Since the users are speaking from an informed position, they are in better position to tell prospective policyholders the dos and don’t.
*Quick touch:
One of the uniqueness of the referral system is that users and prospective policyholders are always in touch as against the relation between insurance practitioners and their clients.
Users and prospective policyholders who have been together over the years have little or nothing to cover up, which puts the prospective policyholder in a good state.
*Income
Referral system would help in income generation for the insurance sector and referrers.
*Poverty alleviation
Insurance remains one of the best instruments for poverty alleviation. The integration of referral strategy into insurance sales process would enhance financial status of referrers and those referred.
According to the Chairman of Corporate Affairs Managers Committee of the Nigerian Insurers Association (CAMCONIA)/Deputy General Manager Sales & Corporate Communications Sovereign Trust Insurance Plc, Olusegun Bankole, the referral system should be expanded, adding that it is a strategy that would grow the insurance industry.
He noted that the concept is necessary especially now that people are looking for additional sources of income and the industry obligated by the government to increase its contributions to the nation’s Gross Domestic Product (GDP).
As the search for solutions to low insurance penetration continues, it is expected that all stakeholders in the industry join hands together to move the industry forward.
Inspenonline believes insurance donations would also help deepen the referral system. This would be achieved by bringing more people to insurance web through gifting them policies, of which they would further tell other people of the impacts of the donated policies.
