Wednesday, 7 May 2014

Expectations on foreign underwriters dwindle


Commissioner for Insurance Fola Daniel
Chuks Udo Okonta

Public expectations on foreign underwriters that recently bought stake in Nigerian insurance companies seem to be gradually eroding as most of them have failed to change the game by introducing innovations capable of taking the industry to the next level.

Investigations by Inspen revealed that most of them are now being held down by the challenges that have stemmed local operators. Hence, they are gradually forgoing their initial plans, to tread the ways of the local operators.

It was expected that the foreign operators would spice the industry with retail strategies and other innovations, but they seem to be moving to wholesale which is also termed ‘Brokers’ Market’.

An operator, who anticipated radical change with the influx of the foreign operators, said the initial threat that the operator will change the game is gradually eroding as the foreign operators seem not to have something new in their kitty.

Worried by the development, the Managing Director Risk-Guard Africa Nigeria Limited, Yemi Soladoye, at a forum queried Old Mutual on what new it has for the industry.

He called on the National Insurance Commission (NAICOM) to set developmental agenda as key requirement for approval of new entrants into the industry.   

Firms like UBA Metropolitan Life, Old Mutual, Sanlam Emerging Markets of South Africa and more, raised public expectations when they berthed in the country, but their contributions according to industry observers, are still insignificant and incapable of changing the game in the industry.    

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