Huge Population With Shallow Insurance Penetration Is Abnormal Says MD Mutual Benefit Assurance

By LOVETH AZODO, Lagos

The Managing Director of Mutual Benefit Assurance Ltd, Femi Asenuga has called on stakeholders of the Insurance industry to intensify their effort in deepening Insurance penetration in the nation’s economy.

Asenuga who made the call during his welcome address at the Training for Members Of the National Insurance and Pension Correspondents (NAIPCO) organised by Mutual Benefit Assurance Tuesday in Lagos said that the underwriting firm had from its inception targeted at the unserved and underserved population of the Nigerian market.

He attributed the emergence of its delightful products to the company’s strategic target on the said segment of the nation’s market.

He said “we were the first to come out with products selling at a unit price of N50 although it is rebranded now, we are the Largest retail market team today.

Speaking on Insurance penetration, he lamented that “It is an abnormally to have such huge population and a shallow penetration of the Insurance business.

During her keynote address, a Nigerian journalist, media entrepreneur and television host, Ms Kadaria Ahmed urged that Insurance activities in the country should be encouraged through continuous sensitization of the public on the benefits of having insurance.

She said “Reliable Policies should be formulated around risk management as this will build trust among citizens and even attract investors.”

She urge the government to provide an appropriate environment that encourages insurance business.

“The success of an economy is tied to the availability and accessibility of insurance and its products.”

“Without the guarantee of insurance, most businesses will not be able to operate, and construction projects which foster infrastructural development will not go forward.”

“Creativity and Innovation will be hindered as people/ businesses will not be willing to take risk, explore other areas of expansion and break from old ways of doing things.”

“Media needs to report on Insurance beyond products and industry events, but help people understand its significance not just to individuals but to society and national development.”

Also speaking, Head, Technical Department, Joseph Oladokun delivering his paper on Personal Accident Insurance explained that the Policy provides compensation to a person or beneficiary(ies) for death or bodily injury resulting from accidents, reimbursement of Medical and other related Expenses incurred as a direct result of an Accident, benefits for disablement following an accident whether total, partial or temporary in the agreed rates and Beneficiaries in the event of death following an Accident.

According to him, Fire and Special Insurance cover ensures protection of Assets such as Buildings and contents (Personal Effects, Furniture, plants & machinery, stock in trade etc.) against physical loss or damage by fire and allied perils.

“The primary perils covered under the Policy include Fire, Lighting (Qualified) Explosion. The other (Special) Perils covered include: Bush fire, Windstorm, Storm, tempest or Flood, Impact by road vehicles or animals, Malicious damage, Escape of water from any tank, apparatus or burst pipe, Riot, Strike and lock-out, Aircraft and other aerial devices and Earthquake/Volcanic Eruption.”

On claims processing, he advised that a Professional Broker should guide the Insured on what can and cannot be claimed, and how to prepare the claim.

“The claim should contain the sections of the Policy on which the claim is based (package policy), plus all documentation supporting the amount claimed, Specialist consultants can be used to prepare the claim, if need be.”

“These costs plus Owner’s costs are not normally recovered except in huge Energy claims,” he said.