‘Awareness, capacity development, research, to drive insurance penetration’
The nation’s insurance industry has a big challenge and this is to create the necessary awareness and education so that a larger percentage of the population understand insurance and its benefits. Jide Orimolade, managing director/CEO, Law Union & Rock Insurance plc, in this interview with journalists, bares his mind on awareness, micro insurance among other issues. Excerpt:
What can be done to ensure more compliance with compulsory insurance policies?
The industry players need to step up the level of awareness campaign while the regulators need to also improve on the enforcement of compliance. We also need to take insurance awareness to the younger generation in the schools through teaching of insurance subjects in primary and secondary schools. This way, we can build the next generation of insurance consumers.
How can house owners benefit from the builders liability insurance?
House owners who have suffered loss or damage arising out of negligence, error or omission of the building contractor can obtain compensation from insurance company.
What cover does the occupiers’ liability insurance provide?
Occupier’s liability insurance covers the insured against legal liabilities to third parties and the owner of building.
Who are those required to take professional liability insurance?
It is for all individuals and companies who provide professional services to clients for a fee.
Two years after NAICOM commenced the implementation of no premium no cover, how has it impacted on insurance business and clients?
It is a very positive development for the industry as a whole. The “No premium,no cover” regime has impacted positively on the cash flow of insurance companies and has almost eliminated issues of outstanding premiums which a significant part use to be written off as bad debts in the past.
The downside of this policy however is that most clients now resort to short-term cover as most of them cannot afford to pay the total annual premium once. This in a way reduces the amount of funds available for investments during an accounting year and thus impact negatively on investment income.
There have been incessant market fires in the country, what are the major causes?
Market congestion and over population, nature of materials used for construction or partitioning, nature of goods stores and the used on fuel generators have been identified as the chief causes of market fires.
You know of our markets are constructed with materials that are not fire resistant and also the nature of some goods stores, if there is a little spark of fire, it spreads easily. Also, due to congestion, the Fire Service finds access difficult.
How can traders protect their businesses with insurance?
By taking up appropriate insurance policies for the businesses to cover the goods while being imported or stored in the shop or warehouse and also while being transported from one location to another.
What kind of insurance policies can an entrepreneur take for his business?
Fire and burglary insurance is appropriate for his goods, buildings and vehicle. Group personal insurance for his staff and public liability insurance to cover him against legal liabilities to third parties. There are special insurance products for specific kind of business. They need to talk to us for proper guidance.
What is responsible for low insurance development in the country?
Basically, this is caused by low awareness of the importance of insurance. We are confident that this will change in the next couple of years.
What is the relevance of micro insurance to the public?
Micro insurance is relevant because it fits every person, family or business irrespective of their income.
What innovations have been introduced by Law Union & Rock of recent?
We have improved on our ICT systems with upgrades and unique e-solutions that aim to deliver value promptly to our customers. With this in place, our customers can buy and pay for their insurance online. We also have developed new-to-market products that will see many people at all income levels taking into insurance. This will drive insurance penetration which is still at the lowest level in Africa.
What means have you introduced to make insurance more accessible to the insuring public?
We have set up a robust sales Agency headed by an experienced expatriate manager. Our agency network is expanding fast and we hope to recruit and train up to 1,000 agents nationwide in the next 12 months. Our products are distributed through our agency network. Also our Mobile platforms will also get our unique insurance products to millions of Nigerians.
How active is Law Union in the oil and gas business?
We are playing very actively in the oil and gas insurance. Our oil and gas portfolio is big and constitute a significant proportion of all our product portfolio. We have very robust reinsurance arrangement with both local and foreign reinsurance company to ensure we settle our customers’ claims promptly.
I must say that oil and gas underwriting requires substantial capacity in terms of capital and expertise. These we have been building and we are confident that we will soon be a company to beat in oil and gas insurance underwriting.
Are you interested in developing the micro insurance business?
Yes. Micro insurance is important areas that even the regulators are encouraging underwriters to go into by providing well-articulated guidelines to regulate it operations. We are putting structures in place to play actively in the micro insurance market in the near future.
What are the major insurance products you have for the public?
Our products cover all areas of risk exposure of individuals, families, groups, schools, companies and the government. We have unique motor insurance products that fit every pocket. We have fire and special perils insurance to cover homes and companies. Our accident policies provides cover against injury, disability or death that may result from an accident.
What are the compulsory insurance policies that you are providing?
Professional indemnity for healthcare practitioners, builders liability, occupiers liability, motor third party insurance are the major compulsory insurance products that members of the public can bay from any of our offices or agents.
What are the developments that the public should be expecting from Law Union?
Members of the public should expect the best quality service delivered promptly through our innovative channels. They should expect prompt payment of their claims.
A lot of people still have fake motor insurance, what is responsible for this?
The awareness is still very low among members of the general public. Also, enforcement is still a challenge but it is improving.
For us at Law Union & Rock, our customers are empowered to verify the authenticity of their insurance. We also ensure that all our customers’ policies and promptly migrated into the Nigeria Insurance Industry Database (NIID) where members of the public can verify online or through their mobile phones.
What are the risks of having fake insurance papers?
Anyone with fake insurance papers risks going to jail. This is a criminal offence punishable by law. It is also dangerous to victims of road traffic accidents as they may not be able to get adequate compensation from the culprits.
How can a person get genuine motor insurance?
By making sure your buy your insurance policy directly from insurance companies or their approved agents. For us at Law Union & Rock, you can buy your motor insurance from our website and print your motor insurance certificate.
If an accident occurs, what should an individual do who has genuine insurance cover?
The first thing to do if accident occurs is to ensure everyone is safe and those who need medical attention are taken promptly to the hospital. After that, you contact your insurance company either by telephone, email or any another means. Where you have a valid claim, you will be required to give full details of the accident and the parties involved. The insurance company will assess the claim and settle the claim as appropriate.
How should he go about processing his insurance claims?
It is very simple. Just complete a Claims Form, attach all necessary supporting documents as stated in your policy and submit to the insurance company. Where necessary, the company may inspect the accident vehicles and visit the injured persons and then settle the claim as appropriate.
What types of insurances should a motorist have?
Law Union and Rock Insurance plc has several products under its motor class ranging from Comprehensive cover which is the highest level of cover to Third Party cover which is the lowest cover.
What is the way forward for Nigerian insurance sector?
The need to invest more in awareness creation, human capital development and investment in research and development as well as investment in technology. It is also important for genuine claims to be settled promptly.
How can insurance be taken to the grassroots?
Through micro insurance initiatives and products. Also, the need to direct marketing communication about insurance products appropriately to grassroots.
Do you have any general advice for members of the public?
My advice to the general public is that they should embrace insurance. They should not go with the notion than insurance companies do not pay claims. I tell you those who have insured with us have good testimonies in this regard.
Most people still erroneously think that motor insurance is to allow them avoid police arrest. There are far more benefits that they can gain from insurance and I want them to key into this and they will never regret it.