By Henry Uche [email protected]
In his quest to see a reinvigorated insurance sector that contributes to a viable economy, the Chairman of United Bank Of Africa (UBA) Mr. Tony Elumelu, has charged the Nigerian Council of Registered Insurance Brokers (NCRIB) to move the industry forward. UBA boss who made thecall at the 60th anniversary colloquium and Book launch of NCRIB in Lagos recently, also advocated a very strong insurance sector for the country’s economic growth.
According to him, there is so much yet to be done in the industry under review, particularly in area of regulation and ethical practices. He noted that financial services are not a privilege, but a right – which must be simple, smart and accessible for all.
“An economy is as advanced as its insurance sector. But unfortunately our industry’s contribution to national GDP is tiny. Our reputation could be better, our practices more professional, our promises to our customers always honoured. A deep and well-regulated industry is a benefit for all – not least for the professional broker – the trusted and necessary confidant of the client. It is a time of great pessimism – but I am not a pessimist. I see the opportunities, I see our industry’s potential, so let us all join together for the common good.”
In a bid to redefine insurance practice and refine practitioner’s skills, Elumelu said, “We must strive to achieve the highest levels of professionalism and dedication in delivering excellent service to the public, who rely on us to provide them with comfort, if Nigeria is to get the insurance industry our country deserves.”
UBA boss charge NCRIB on: Governance and compliance and the need to elimination of unprofessional practices; the need for innovation powered by technology; promotion and awareness of insurance; a very deeper and highly capitalised industry – that serves the customer and channels long term investment to Nigeria’s economy as well as need to expand the sector by superior customer experience – which must be focused on smart, simple, trusted and -quick settlement.
“We as an industry need to enforce strict adherence to corporate governance by all NCRIB members. We should weed out non-registered and non-compliant members. Those who tarnish the image of the broking profession and the industry at large.
“An insurance broker must be professional at all times. In redefining the practice and practitioners in the broking profession, NCRIB should lead the war against unethical practices that have troubled the industry for years.
“We fight against premium rate cutting; delayed premium remittance; unremitted premiums; overloading of premium; returned premium; fake documents; fraudulent claims; collusion to defraud; mis-selling; unhealthy competition; misrepresentations; manipulation of policy conditions; self-enrichment methods disguised as marketing expenses among other sharp practices.”
He stressed that while NAICOM strives to play its guiding role as the industry regulator, NCRIB must ensure that appropriate sanctions are imposed on any of its members found using unethical practices.
“We need to grow our industry – for all superior customer experience- NCRIB and other insurance industry bodies should collaborate more to deepen insurance penetration in Nigeria. NCRIB should play a key role in government advocacy for pro-insurance laws and policies. Innovation is inescapable. We cannot ignore innovation. Our customers demand it and the industry needs it. The insurance industry undoubtedly benefits from innovation across all aspects of our services. For this to happen, there is the need to reward and incentivise innovation across the industry,”
He charged them to benchmark against global trends, adding that it was high time broker community began to shift focus to retail, saying that- “This is where the future of insurance lies in Nigeria. Brokers have the capacity to lead in this area. Innovation and disruptive practices cannot occur, if we do not broaden our thinking and creativity. Profits from existing lines are not going to deepen insurance penetration, rather we must look at our biggest yet untapped market – the retail market.
“There is a need to generate more awareness and showcase the value of insurance to the public, promoting participation, most especially in the retail space. We must bridge the insurance awareness gap, if we are to make insurance attractive to Nigerians.
“On technology, we remain relevant in the modern business arena. The insurance broker community and, by extension, the entire Nigerian insurance industry, must embrace technology fully. NCRIB also needs to work towards positioning its members properly for digital integration, mediating between the insuring public and the underwriters digitally.
“I believe in our young. There is need to capture our young in the insurance habits from cradle to grave and there is an urgency to develop the next generation of talent to serve the Nigerian insurance industry. The broker community should rally and become the hub for the education and training of our youth.
“We need to raise the profile of our insurance professionals, make the profession attractive for the younger generation – to be a broker should be an aspirational choice.