Takaful insurance will contribute strongly to deepening insurance penetration in Nigeria this year, an Expert and Consultant on insurance, Mr. Ekerete Gam-Ikon, has said.
Gam-Ikon stated this in a recent media interview while discussing the year’s outlook for the Nigerian insurance sector.
Speaking on the contribution of the current Takaful insurance companies to the industry, he explained that from the four Takaful insurers, only two had been licensed since 2016 and have been effectively contributing to the growth of the market, while the other two just got their Approval in Principle (AIP) in September 2019.
Highlighting some of the challenges encountering the insurance sector such as public distrust, poor awareness, inefficient customer service among others, he noted that Takaful insurance will bridge the gap to these problems.
“With the excitement that welcomed the last two firms given AIP, I would personally expect to see a Takaful Insurance conference in the course of the year. Takaful Insurance is a case of having a solution that meet the needs of people who are yet to be aware, informed and engaged in any form of insurance,” he said.
Commenting on the recapitalisation exercise and its impact on Takaful, he was optimistic that some big companies will seek to invest in the opportunities that exist in Takaful and Microinsurance.
He further added that financial inclusion is another opportunity to see how Takaful insurers will contribute to scaling across the nation.
He thereafter, encouraged the Takaful operators to adopt the digital solutions to excite their customers especially the young population in Nigeria so that, they can buy into their products and services.