More Nigerians embrace life insurance

Chuks Udo Okonta

The prediction that Nigerians will soon embrace life insurance products like the telecommunications seems to be coming to pass, as a report from the Nigerian Insurers Association (NIA) has revealed that life business generated the highest premium for the industry in 2011.

 Former Managing Director Crystalife Assurance Plc, Mrs Seyi Ifaturoti, had predicted that, with the efforts being put in place by underwriters, the public will soon embrace life insurance products like the telecommunications which was years back patronised by few Nigerians, but now has become the toast of everyone.

The 2011 Nigeria Insurance Digest obtained from the NIA showed that the industry got N54.55 billion gross premium from life business, overtaking motor business (N44.65 billion) which had over the years remained the gold mine for the sector.  

Ifaturoti, said: "It is my belief that life insurance would be appreciated just as the telecommunications, which many people in the past did not believe would be embraced by the number we have today."   

She noted that most life companies now have baskets of products ranging from education, health, pilgrimage policy, mortgage policies, credit life and more. All designed to improve lives.

"We believe that addressing the needs of people would enable us to draw them to embrace our business. We have been trying to talk to people, engage in pool marketing which we believe that sooner than later, we should be able to attain the desired level of penetration. It is our key objective to deepen the penetration of individual life business. We have given ourselves targets on how to achieve our set objectives," she added.

She said operators would continue to educate the public on the need for insurance, adding that as soon as people begin to embrace the business, it would have multiplying effects.

Ifaturoti said the market opportunity for insurance in Nigeria has grown rapidly, requiring businesses to rethink product design, pricing and distribution strategies to effectively reach the increasing pool of potential customers.