Lloyd’s of London made a mark in the 1906 San Francisco earthquake. Within days of the devastating destruction, it had set up its facility and settling claims. It was quick, it was unprecedented in the history of quick claims payment. It was talked about for a very long time, and its still remembered up and until now. That was insurance in action.
High calibre operators in the insurance industry want that same quick response to risk failure covered by insurers. Their shared view was that covered losses should receive spontaneous mass action claims response endorsed by insurers. That way, insurance as the maiden of life and human endeavours would be seen by all, appreciated and accepted.
This was the cause canvassed by Mrs. Rashidat Adebisi, Chief Client Officer/ Executive Director, AXA Mansard Plc, during webinar e-discourse, with the theme, “The development of Insurance and practice in Nigeria: Prospects and Challenges.” The keynote address by the Commissioner of Insurance, Mr. Sunday Thomas, was delivered on his behalf by Mr. Leonard Akah, Director, Corporate Governance Enforcement & Compliance, National Insurance Commission.
Mrs. Adebisi, who was one of the discussants, said in Nigeria, people are yet to see insurance in action as it is done in developed markets where the response of insurance was always the leading issue always after a catastrophe.
To get to that point, she said the industry has to do a lot more to create awareness. This was expanded further by Mr. Oluwole Oshin, Group MD/CEO Custodian Investment Plc, who said a vibrant retail structure would spread the wind of insurance; however, he said this needed compulsion because as he put it, insurance is never bought but it is sold.
Oshin, noted that Microinsurance and Takaful are already addressing some gaps across the nation as it relates to to excluded groups with in the society and that is limited to the base of the pyramid, thereby giving the excluded the taste that insurance is good to purchase and claims get paid when the event covered happened.
Adebisi, also holds the view that the retail market as important as it is has to be driven by the banks and gradually push the penetration rate out of the constant 0.3 % penetration rate.
Another discussant, Mr. Shola Tinubu, MD/CEO Scib Insurance Brokers Limited, said insurance companies are not getting adequate endorsements and referrals that translates to more insurance uptake by individuals and companies for the huge payments that runs into billions of naira yearly for claims payment.
Tinubu, said the reason insurers not reaping the benefits of claims paid, could be traced to the stretch of time it takes to get claims paid sometimes. He explained that because the insureds are not happy even after claims are paid, they are not positioned to speak about it, and this could have doused public apathy and sustained turnaround and embrace of insurance.
Besides, he said the regulatory process that makes premium payment first line charge in purchasing insurance cover does demand same process for early claims payment, he therefore, called for a balance of the equation of early payment of premium and early claims settlement.
The second in the series webinar e-discourse was hosted by First Law & Impact Consulting Limited and sponsored by Custodian Investment Plc, AXA Mansard and Scib Insurance Brokers Limited. Dr. Omogbai Omo-Eboh, was the moderator.