The Sun News Online

Managing Director and Chief Executive Officer of Insurance PHB Limited, Mrs. Cecilia Osipitan has said that the insurance industry which has become the key segment of the nation needs the media to sustain its consolidation.

Mrs. Osipitan said, that it is no longer news that the insurance sub sector in Nigeria has become a key segment of the nation’s economy rather, that the sector has attracted a new surge of confidence buoyed by its more focused investors, tighter control by the regulatory authorities, better product development and service delivery as well as an impressive assets base overall.

According to her, the sector has equally begun to attract some of the best human material available, who have started to play some strategic roles in the evolving Nigerian insurance experience. This however does not suggest that all is perfect with the sector as its huge potential is yet to be fully tapped.

She spoke on other issues about the insurance industry.

Before the consolidation
It was both tempting and easy to blame the insurance industry for the sad state of insurance service delivery in Nigeria. As a visible and inviting target, the insurance industry provided many opportunities for harsh public condemnation. At least in its incarnation as the manage care industry, which combines the General Insurance and Life Insurance delivery functions, insurers have suffered in the view of many commentators, from adverse media attention and an inability to convince the public of its good intentions.
Sadly, some of us who are self-acclaimed industry experts also joined the condemnation chorus. Prominent among arguments fielded was that the industry did not engage the public in a full and open discussion of its true level of preparedness to enter the global terrain, that the industry had paid insufficient attention to legitimate the insuring public’s grievances, and for that had garnered a reputation for acting in its own self-interest.

These conditions, not passing any judgment, is no news, have been put in the showcase, more prominently by the media than a number of unimpressed clients that have celebrated some delays in claims settlement but are now getting better services and faster responses from the underwriters.
This observation is not necessarily to say is purely responsible for a near 100 per cent no records and activity situation when it comes to what role the insurance industry has played in the media since after the consolidation of which many have argued, has not gone beyond a mere slight increase in adverts placement while strictly using the media as an instrument of self announcement through rigorous press and news releases.

The role of media in insurance development
It is in this wise that this has become very crucial to focus on how the Nigerian media, the proverbial fourth estate of the realm could leverage from the consolidated insurance sub sector for maximum impact.

However, it must be mentioned that looking at records since after recapitalization in February 2007, statistics have, reported very negligible activities reviewing the role of Insurance in the Media. I am more interested in a much more symbiotic relationship that is mutually beneficial.

Insurance industry and media interface
It is pertinent to note that the media constantly requires an interface with the insurance firms so that they can understand the insurance activities and report appropriately.
The image of the insurance industry can be made or marred by how the media handles it. A lot of education and training are required for media practitioners to achieve effective reporting. Insurance firms should have since after the consolidation begun to explore these avenues by investing in the continued training of the media people.

However the insurance industry of the post-consolidation era is different in its outlook and is overwhelmingly characterized by financial capacity, top-notch human capital and impressive use of technology to drive the insurance business. Not only so, the post-consolidated insurance industry is working very hard to beam its searchlight to discover other areas deserving the insurance impact.
As the industry continues to grow in size and competence, insurers must continue to look at partnering with other sectors and industries within socio-economic landscape by deploying relevant strategies that will prove the immense value the industry that brings to bear on the overall geography of our economy. One of such sectors of the economy is the media.

Though an unlikely ally, the media nevertheless must come to be accepted as a vital component of society and as such must of necessity by giving all the props that will also promote its relevance and continuity and contribution to nation building.

It is a truism that the media in its many ramifications is growing in scope and profitability and is faced with peculiar operational challenges that it alone can no longer manage. Take for example the Nigerian movie/ advertising industry, which is just a convenient example and how it has wielded so much clout in recent times and is growing at a fabulous rate.

Though it may not yet appear that this sector of our economy which is now attracting the attention of the rest of the world needs properly crafted insurance covering, soon it will become an issue since it is common knowledge that in every enterprise is imbedded multifarious risk profiles.
It is also common knowledge that the greater and higher the profitability of any industry the greater the attendant risks that should normally follow its commercial functions.

The role of Insurance in media industry
Insurance is insurance anywhere. Across the globe, people naturally do not imbibe the culture of insurance unless educated and convinced about the need to protect what they have.
So, that, Nigerians do not buy insurance is not to say that we are different from others, but it is because we have not been exposed adequately to the knowledge and importance of getting ourselves associated with insurance.

This awareness is what the Insurance Industry must begin to take more seriously post-consolidation in its collaboration with the media.

India for example is one of the countries in the world where insurance has succeeded because frantic efforts were made through awareness campaign to educate the population and market people both poor and rich to see the need for insurance and how it affects their individual and group economic growth.
Insurance education is indeed of great importance. This is because there is no limit to knowledge. Insurers even in advanced countries still make out time in strategic manners to educate the insuring public and potential insurers on what is new, and better approaches to utilize insurance services.
The media is a veritable instrument for various promotion and execution of virtually all of such educating programmes.

Insurance awareness in USA
In Illinois, October each year is Insurance Awareness Month when independent insurance agents across the state embark on consumer relations campaign. The Professional Independent Insurance Agents of Illinois for this year are distributing an agency marketing kit to all members.
The kits contain materials for agents’ use, including ad slicks, radio scripts, camera-ready bulletins, and many more. The programme provides them with an opportunity to deliver pro-insurance messages directly to consumers and the goal is to create a consumer preference for independent insurance agents by educating the public on the benefits of using an independent agent.

Having concluded a recapitalization exercise in the Nigerian insurance market, industry watchers are concerned that unless there is quantum leap in the number of the insured, the objective of the reform exercise in the sector may not have been achieved. Experts are of the view that operators must seriously come with a purposeful package that will increase the visibility of the industry and players across the nook and crannies of the country.

It is not in contest that the media in collaboration with the insurance industry is capable of dictating the pace.

Insurance PHB
Insurance PHB, one brand now dominating the Nigerian Insurance Market, won ThisDay’s Award as the Insurance Company of the year, by beating other frontline underwriting firms that were all nominated for the highly prestigious annual international conference initiated and sponsored by Leaders & Company Limited, publishers of ThisDay Newspaper is working harder to remain the industry leader.
We bagged the Best Vehicle Insurance Policy of the Year 2007. This particular award in recognition of the outstanding qualities of Insurance PHB auto tracker Policy was bestowed on the company by the African Direct Marketing Merit Awards.

The tracking device installed free of charge when any motor vehicle is comprehensively insured by Insurance PHB, assists car owners themselves monitor their vehicles’ location and movement and can actually demobilize them using mobile telephones.

It is now on record that Insurance PHB Limited has recovered many vehicles snatched at gun-point in various parts of Nigeria through the device, including one Honda Vehicle from Burkina-Faso that was snatched in Lagos.

We have since commenced a strategic transformation in various areas and re-branding process with a clear focus on raising the reputation of the insurance sector in Nigeria.
This includes special product design and development, quality service delivery, automatic claims settlement structure, world-class customers service approach, errorless documentation as well as full technologically-driven risk management, claims settlement processing and re-insurance operation while leveraging on the high profile and the strategic performance and outstanding brand reputation of its parent company, Bank PHB Plc.

The insurance company known for its initiative exclusivity in special product design and development recently launched two special products, Insurance PHB Welfare Scheme for Political Office Holders (WELSPOH), a Group Accident Insurance Policy designed to cover all political office holders and those in the National and States Houses of Assembly.

And the second product is Insurance PHB Passengers Manifest Scheme (PAMS), an Accident Insurance Policy designed to cover passengers in fare paying vehicles and ships plying Nigerian roads and inland water ways.

It is worthy to note that as a composite insurer before the last recapitalization and NAICOM specialization formula now over-turned, in terms of products and specialization, the present Insurance PHB has been counted a very strong and formidable front-liner in the Nigerian insurance market.
Besides its newly introduced products, Insurance PHB Limited parades an array of people-oriented products such as Homestead, Money Web, Oil & Gas Plus, Education Access, Students Welfare Scheme (SWIS) and Walking Stock Policies, having secured approval of its Board to obtain a licence to also run a Life company. Health insurance, oil and gas and financial risk management are major potential growth areas that have captured the attention of the Board and Management of Insurance PHB.
The company underwrites engineering insurance and credit risk management which include policies relating contractor all risk, erection all risk, bonds, oil and energy, plant all risk and machinery breakdown policies.

Looking at the company’s high ambition in increasing its market share, Insurance PHB is leading in over fifty insurance accounts of major government accounts, fifteen banks and hundred other bodies and ten major oil companies including Shell Bonga project where it is the primary underwriter leading eight other Insurance/Reinsurance companies.

The company which aspires to be among the top three in two years has begun the implementation of a process that would make it a known voice and active player on the continent of Africa.