Underwriting firm, Leadway Assurance Limited, has expressed its determination to promote insurance awareness by increasing industry visibility in national growth.
The Head, Compliance and Enterprise Risk Management, Temilolu Aduloju, said this yesterday during a courtesy visit to the Rutam House of The Guardian in Lagos.
Aduloju explained that the move is borne out of the conviction that greater success can be achieved for the insurance industry, if they consolidated on the gains made in the last few years, whilst leveraging on the national economy.
According to him, Leadway is focused on promoting the ideals of the industry and landmark successes in enthroning unity in the sector.
The firm paid claims of N26 billion in 2017 to policyholders; this has been the strength of the company because we are keeping to the promised made to our customers.
“The current reality of our operating environment appears dire and continues to test us on all fronts.
“However, we continue to find ways to deepen penetration of insurance by educating the public and encouraging them to ‘Think Leadway’ once they have decided to buy insurance.”
He charged the insurance industry to play an active role in a nation’s economy, being a tool for the transfer of risks from businesses and individuals to strong and reliable risk management institutions. It should also help to create wealth and employment opportunities through its various investment vehicles.
According to him, the poor performance in the industry can be traced to cultural and religious beliefs, which make people turn blind eyes to risks around them. This is in addition to the issues of perception and understanding of the concept of insurance, as well as the limited access to prospective customers, which impacts very negatively on market penetration.
For example, only an approximate 1.5 per cent of Nigerians within the insurable class are covered by insurance today, meaning that Nigerians and their businesses are largely unprotected from the myriad of risks they face daily.
The low coverage and penetration level further indicates the low level of acceptance among the people, which is a consequence of the cultural perception of insurance in the country, consumers’ distrust of the insurance system and low insurance literacy.
Having taken cognisance of these issues, he said Leadway Assurance has elected to evolve creative solutions to bridge this financial protection gap. After almost five decades in the insurance business sector, the company recently launched a first-of-its-kind mobile insurance office to take insurance closer to the neighbourhood.
The Head, Corporate Communication/ Services of the firm, Olubunmi Adeleye, who also explained that “Notwithstanding a population of over 180 million people about a third of which are within the insurable class, Nigeria is said to have about five million registered policyholders. This lack of density shows how largely untapped the Nigerian market is and the huge opportunities available to increase insurance uptake and the number of policyholders nationwide.”
Adeleye said the mobile office is equipped with state of the art communication technology that allows customers to be serviced real-time, end-to-end, wherever they may be. It is also environmentally friendly as it draws its power from solar while within remote areas.
Starting with Lagos State, she said the company will be activating market roadshows across several local councils.