Wednesday, 10 September 2014

THE MEDIA AND PROMOTION OF INSURANCE CULTURE IN NIGERIA PRESENTED BY MR. O.S. THOMAS, DIRECTOR-GENERAL NIGERIAN INSURERS ASSOCIAION AT THE MAIDEN INSURANCE INDUSTRY MEDIA RETREAT ON WEDNESDAY 10TH SEPTEMBER, 2014 AT CONTINENTAL SUITES, ABEOKUTA, OGUN STATE.


INTRODUCTION

The timeliness of the Joint Industry Media Retreat is a reinforcement of the beckoning need for greater Industry harmony. This retreat therefore signify various things to the industry

The Retreat is an Industry statement of Appreciation of the Media as worthy partners in progress.

It is a reflection of the mutual and reciprocal obligation between the Insurance Industry and the Media which reinforces the stakeholder value of the media in the realization of Insurance culture

The retreat is an inclusive approach to making the Media part and parcel of the Industry change process.

The retreat is a veritable platform for mutual understanding between the Industry and the Media.

 

BACKGROUND

The Insurance Industry has continued to be bedeviled by several challenges relating to image and Public perception. Among these challenges are the following:

Poor Public perception occasioned by several factors including what many term the conservative nature of insurance and its operators.

Unpatronizing comparism of the Industry with the banking sector. It is always the norm to compare the Insurance Industry with its twin brother- the banking industry, with a conclusion that the latter has continued to fare better in terms of public image and perception.

Relative absence from public consciousness. The public most often do not conceive insurance services as being as fundamental to their existence as banking services.

 

 

3.0 EMERGING TRENDS

Notwithstanding the challenges as mentioned above, there has been a relative change that gives hope for the future. Increase attention is being beamed on the industry by the media. For instance, there is now hardly any newspaper, whether established or emerging, in Nigeria that does not devote conspicuous attention to insurance reportage, whether consciously or instinctively. The importance of the media in the promotion of insurance in Nigeria cannot definitely be over-emphasized.

The media and sections of the Insurance industry are forming and developing useful alliances. The emerging system of deploying media platforms for insurance product distribution is a note for reference.

The emergence and continued strong existence of the National Association of Insurance Correspondents (NAICO).

Emergence of special Media Insurance Events (Champion Insurance Day Business Journal Insurance Event, Almond Consumers’ Forum etc).

Greater rapport between the media and the Industry Regulator.

Growing interest of media personnel in insurance education (This Day Insurance Correspondent is now Associate of CIIN. The Nation Correspondent is writing CIIN’s Professional examination).

Diversification of media coverage of insurance from the traditional print to electronic (Almond Productions on Channels and Silverbird TV, Insurance Radio by Bisi, Eko FM slots by Iyabo, Online Blogs by Chuks Okonta (Inspenonline) and Nkechi’s Business Today online  Blog).

All of these are eloquent testimonies of the changing tides in media reportage of Insurance and the salutary effects on the image and perception of the Industry today.

 

THE MEDIA

4.1       UNDERSTANDING THE MEDIA

A good understanding of the media will help in the assessment of its role in the promotion of Insurance culture.

This paper, deliberately, will not attempt to define the media or attempt to dwell on its history and evolution e.g. from lwe Irohin to Modern print media or even the evolution of the Radio from the old Rediffusion boxes. (Doing a historical thing here will amount to “taking coal to Newcastle”, as this is a largely media audience).

What this paper will therefore attempt to achieve will be bullet guides as follows:

Traditional Media (Electronic and Print) and their known history and evolution.

Operation of Traditional Media (Examples of National Newspapers, Regional Newspapers and Local Newspapers.

Social media. The evolution of social media and the waves it is making at the moment cannot be ignored in a discuss of this nature.

The internet has more or less introduced virtual media. The truth however is that we cannot get hold of news in cyberspace very much as we can lay hold on a copy of any of the National Newspapers. Realizing the trendy reality of virtual media, even the traditional print media are posting their papers online.

While the Social media has its demerits such as Viral nuisance and could be out of control, the advantages which include  immediacy (Real time), global reach, fluidity, large space almost unlimited, faster reach, easier and more effective storage and retrieval, cross referencing advantages, better audio-visual support etc. are worthy of note.

4.2       DEALING WITH THE MEDIA

Let me quote THE CORPORATE COMMUNICATIONS BIBLE by Robert L. Dilenschneider (Year 2000) in capturing the real essence of knowing how to deal with the media.

“In just about any country, you have to use great judgement in dealing with the media. If former New York Police Commissioner, Bill Bratton had been wiser in handling the media, he might still be commissioner. But it didn’t dawn on him often enough to mention in media interviews how much of the credit for fighting crime belonged to his boss, Major Rudy Giuliani”. In the same vein, if the British Royal Family understood the media better, it would have handled Lady Diana’s death with better caution even in its grief. The rest of the Diana controversy is now history.

I am also compelled to borrow the views of the globalization public relations expert, the late Kathleen Connelly, who pointed out that “The media tends to be idiosyncratic in each society”. Connelly further stated that “There are even big differences between the media in the nations of the European Union”.

What this means is:

We have to approach the media on a country-by-country basis (Not seeing the media in Nigeria, for example, through the British Prism).

There are legislation and regulatory differences guiding public information from one country to the other.

There is need to seek advice from a local PR expert or rely on the in-house PR Manager to deal with the media appropriately.

There are cultural differences in global media relations, making it necessary to understand the media culture in your jurisdiction (In Egypt, according to DILENSCHNEIDER (Corporate Communication Bible), interacting with the newspapers is so volatile that Public Relations people are better off bypassing them and getting publicity directly through special events. In France, using general papers for communicating business news rarely works out. Because the newspapers have such small circulation, it is much more effective to discuss business news through special events, salons, and Trade fairs. In China, as television advertising grows more popular, the country’s over fourteen thousand newspapers are becoming less influential.

We are luckier in Nigeria and the media culture remains much more objective and thorough. But we still have some local cultures to deal with through better understanding.

 

4.3       HELPING THE MEDIA TO HELP US

4.3.1    Crisis Points between the Media and the Industry

Conflicting mandates The Industry Operators are conservative with facts. Correspondents want the facts highlighted.

Some CEOs are regarded as “Press-shy” thus inhibiting information flow which may limit the corporate presence in the media.

Industry poor perception and understanding of the role and essence of media relations. PR employees who are expected to be the mid-point between their companies and the media are usually accorded less than optimal respect. A few companies today are just realizing the need to engage PR professionals and only a handful truly empower them to become integral part of Top Management and be able to influence company media policies.

 

4.3.2    Developing Strong Media Engagement platforms

Need for the Industry to create a constant mid-point of engagement like this on-going retreat between Journalists and Insurance operators. (The Joint Industry Retreat for the media is commendable).

Press Conferences and Press releases must have strong point-of-viewness (Insurance and Ebola, Insurance and Boko Haram, Insurance and collapsed building, Insurance and kidnapping, Insurance and strong advocacy issues e.g. staying healthy, preventing auto crash accidents, avoiding sudden death, owning one’s home.

Engaging audio-visuals in giving solidity to media messages. Since we live in a visual society, it pays to construct a visual frame of reference. This includes everything from company annual report to website. Visual impact has helped companies like Nike, Coca cola and many Nigerian Banks like GTB and Zenith. It is also helping some Insurance companies like Leadway. It is good to “First Think Visually before adding the words. How our industry companies and their employees look will have a lot to do with how the public perceive us.

What picture or pictures come to mind when people think of our companies?

When explaining their philosophy of business, companies should speak in terms of visual images. If you are launching a new product it might pay to explain that it will become as ubiquitous as the Coca cola’s red logo – The trick, according to DILENSCHNEIDER is to make sure that your target audiences recognize the image.

Establish platforms that will appeal to the younger generation. Test-running our visual or audio references may pay off because there’s a widening gap in the common experiences of baby-booming generation and generation X’ers.

Capitalize on media events (Events that would naturally appeal to the Media e.g. Media Talks, Media Dinners, Media Awards, Media  Lectures, Media Tours, Media Day, Media etc.)

 

 

 

INSURANCE INDUSTRY TODAY

5.1       EMERGING ISSUES

No Premium No Cover

The Local Content (Capital flight)

MDRI

Increasing issues of compliance, both legislative and financial e.g. IFRS, Emerging regulations etc.

Financial Inclusion Strategy

Attempts at countering the activities of fake operators.

Market agreement issues

Off-shore offices

Insurance stocks (Penny stocks?)

Investor issues

 

5.2       THREAT TO INDUSTRY SURVIVAL

Poor Standard of living of Nigerians and their low disposable income.

Poor attitude to savings and risk management unlike what we have in other developed jurisdictions.

Increasing environment of uncertainty and crimes (Boko Haram, Kidnapping etc. issues of underwriting of emerging risks).

Faking of insurance certificates

Industry practices that are not consistent with sustainability

Cut-throat competition

Poor industry database

Skills gap in highly technical areas of insurance operations e.g. Marine and Aviation, Oil and Gas etc

Poor attitude to training and human capital development comes to mind

Less than optimal financial literacy.

 

MEDIA INTERVENTION ROLE

If the media understands the problems and challenges facing the Insurance Industry, it would be in a better position to report the industry more objectively and with empathy.

Need for better creativity on the part of the Journalists (They should think more out of the Box, Be eager to highlight issues that will develop the industry than the ones more likely to pull it down.

Media should reinforce its insurance dedicated coverage e.g. Insurance weekly pages, Insurance Journals, Online blogs.

Media should be in partnership with the industry in driving the change process.

Media needs greater patience to grasp insurance details before any publication

Journalists should not thrive on sensational reporting of insurance news etc.

Need to serve as veritable mechanism for feedback. The media as purveyors of information should dedicate some special editions or sections to feedback from insuring public. This will position the media as a gauge of public opinion whilst also helping the insurance companies to serve them better with deeper and better insights into consumer expectations.

Media should better develop its agenda setting function (set agenda for government, draw attention to challenges facing the industry, what government needs to do to protect the insurance sector and help it grow e.g. promulgation of beneficial laws, ensuring compliance and enforcement of insurance laws, discouraging capital flight through oversea insurances when there is local content capacity etc.

Media should be more visible in public education by promoting knowledge and understanding of technical words used by insurers. These words should be simplified with explanations of the process of effecting insurance, the role of each party in the insurance contract, the expectation of the insurer from the insured, claims procedure, arbitration procedures and avoidance of conflict situations.

Media ought to engender status conferral: celebrate underwriters, make Nigerians see insurance as part of their everyday life, make the upcoming generation see insurers as role models. The media has made musicians and those in the entertainment industry, why can’t they write articles and comments, features on worthy insurers and companies that have performed well.

News Editors should not substitute other stories considered more interesting than insurance stories especially in insurance devoted page(s).

 

CONCLUSION

This paper will be incomplete without acknowledging the role of the successive leadership of the National Association of Insurance Correspondents (NAICO) as well as the crop of its committed members.

 

The Association has successfully galvanized the team of insurance journalists, ensuring that its members remain committed and disciplined.

 

Part of the objectives for the Joint Industry Media Retreat was a recognition of the exemplary leadership of NAICO and the need to continually foster the industry partnership with the Association in line with the vision of various sectors of the Insurance Industry in ensuring greater public presence in the positive and beneficial direction.

 

It is also necessary to acknowledge the industry leadership in the actualization of this Retreat despite the challenges initially envisaged

Lastly, it is pertinent to state that this paper should not be regarded as the NIA point-of-view; it is a paper for our general education for the purpose of working together for more progress.

Once again, let me convey the appreciation of the industry for the co-operation of NAICO and for the large turn-out at this Retreat.

 

Thank you for your attention.

 

O.S. THOMAS

Director-General

Nigerian Insurers Association

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