#EndSARS Losses: NAICOM Urges Insurers To Reinforce Economic Resilience Of Businesses

By LOVETH AZODO, Lagos

Following the loses, destruction of properties and civil unrest which emanated from the EndSARS Protest, The Commissioner for Insurance, Sunday Thomas has charged insurance operators to showcase their role in reinforcing the economic resilience of individuals, businesses and the economy at large.

Speaking Today at the Chartered Insurance Institute of Nigeria (CIIN) 2020 Insurance Professionals’ Forum, at Abeokuta, Ogun State, the NAICOM Boss opined that insurance operators must utilize the opportunity to lead in the quick recovery and restoration of the affected businesses

He noted that the widespread protests, civil unrest and destruction of properties and others have created further socio-economic hardship and barriers for business profitability and growth.

He said “As Nigeria reals in the pain of the destruction and losses suffered this year, the Nigerian Insurance Industry must utilize the opportunity to lead in the quick recovery and restoration of the affected businesses and also showcase its role in reinforcing the economic resilience of individuals, businesses and the economy at large.

“Therefore, the theme of this year’s Professional’s Forum, “Defining the Future of the Insurance Industry”, is apt and timely,” he said.

Thomas noted that the suddenness of the COVID-19 pandemic imposed immense pressure on all businesses including insurance business, stressing that pressures faced by consumers in the form of reduced finance and business activities, lack of access to credit, expiration and wastage of perishable goods, temporary or permanent business closures and employee contract terminations, life threatening illnesses and deaths all combined to increased the propensity for claims.

He maintained that one of the major challenges for insurers was the inability to market/sell insurance products to consumers during the pandemic which, in turn, reduced the premium income. This he said has necessitated the need for a robust online automated marketing and feedback system in order to reduce the dependence on in-person sales and marketing.

Also Speaking the Muftau O. Oyegunle, President/Chairman of Chartered Insurance Institute of Nigeria (CIIN) said that the Insurance Industry is going through profound change and this disruption is not just digital.

He said “No matter what technological advancement we adopt, if it does not translate to value for the customer, all the capital outlay will have been in vain. The task before us is to create entirely new set of products that inspire customer demand, anticipating and addressing customer needs and wants.”

“These products must be simple and flexible enough for customers to evaluate, tailor and purchase through any channel. There is a need to offer holistic value proposition, one centered on the aspirations that really matter to consumers, including well-being, safety and reaching personal goals.”

“Regulation and a conservative business approach have caused insurers to adjust slowly, but outside forces are now bringing to light the full effects of this transformation-in-waiting for the insurance industry. Disrupters in other climes have found new ways to evaluate risk, with tools like big data, drones and telematics,” he said.