Nigerian Insurance brands and the hurdles they face

NAICOM House: the home of Nigeria's Insurance regulator

NAICOM House: the home of Nigeria’s Insurance regulator

By Frank Aroyewun

Low penetration, poor publicity, slow growth, poor perception from masses, low income, ignorance, meagre managerial stratagem and poor government support in the form of enforcement of the law are what could be considered inhibitive factors affecting any meaningful growth of insurance in Africa’s giant and most populous country, Nigeria. This country is profoundly endowed, blessed with enviable resources and supposedly advantageous to the numerous business opportunities and prospects.

Religion has also been a militating factor, the idea of a bad occurrence scares people and sadly there is a ready- made answer of attributing it to the God factor, hence the cliché ‘God is our Insurance. This is true and one can never disregard the authenticity of this claim, however the bible does not say we won’t experience some form of difficulties or hazard- free lives- independent from certain mishaps and that is why the same Holy Book says “A prudent man foresees the evil, and hides himself; but the simple pass on, and are punished.” This is so crystal clear: the classic story of Joseph and how he saved millions from famine by taking the necessary steps in assuring lives and insuring against the impending disaster is a test case. Through the use of insurance, a bread winner is able to secure the needs of his family should he die or become disabled, by the use of insurance we are able to compensate others adversely affected by our actions -such as when we accidentally ram another fellows vehicle or your building gets ingested by fire which was sparked up by a lightning bolt- who says strange things do not happen?

With a population of over 170 million in Nigeria, insurance sadly has less that 5% penetration. Certainly, Nigerians do not …Read More

Source:: PM Newspaper