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Chuks Udo Okonta
The concept of buying and consuming what we produce is a global trend that has helped individuals and nations to prosper.
Aligning this concept with insurance, shareholders in the insurance industry should buy and consume products – policies marketed by their companies.
According to an insurer, only about two per cent of small unit shareholders have the company’s policies.
This is really unfortunate, judging from the agitations by shareholders at annual general meetings for robust dividend.
Shareholders should understand that their patronage would enhance companies profitability, which would translate to dividend payout.
Shareholders in the insurance industry should consume what their companies produce by buying policies to protect their lives, properties and people around them.
Why shareholders patronage is necessary
*Endorsement
Shareholders patronage of insurance products serves as endorsements to what their companies produce and sells.
The public would convincingly buy insurance products when they feel the impacts on the lives of shareholders.
*Evaluation
Shareholders patronage of insurance products would enable them effectively evaluate the performance of the companies as regards service delivery and claims settlements.
*Profitability
Shareholders patronage of insurance products would enhance premium generation and profitability.
*Improving penetration
Purchase of insurance products by shareholders, would help tackle the poor penetration of insurance in the economy.
*Increase investments
Reduction of risks through insurance, would enable shareholders save more money that would be used to increase their investments in Insurance and other sectors.
*Investment protection
Insurance purchase would enable shareholders protect their investments. Most shareholders sell their stake when faced with uninsured risks.
Buying insurance would enable them transfer their risks and protect their investments.
*Wealth creation
Insurance companies especially life operators have wealth creation products that would enable shareholders grow wealth that can also be channeled into other investments.
Shareholders stand to gain tremendous benefits from buying policies offered by their insurance companies.
They should be ambassadors of companies they invest in by buying and encouraging their family and friends to also buy and leverage insurance system to protect and improve them lives.
