Insurance sector in major push to deepen penetration
Another major effort to increase accessibility and deepen insurance penetration in Africa’s most populous black nation began recently, with Cornerstone Insurance plc taking a plunge into underwriting life and hospitalisation risks of Airtel customers.
The move, being the first of its kind in the country because it is completely free for customers who use cumulatively up to N1,000.00 airtime in a month, analysts believe would not only bring up awareness about insurance but would encourage more consumers to appreciate the importance of insurance.
Before now, FBN Assurance Limited had partnered Etisalat while Mansard Insurance plc partnered MTN for telephony insurance policies, efforts that have seen the nation witnessing penetration policy sales of over 100,000 on month by month basis.
Consequently, stakeholders have continuously argued that for insurance in Nigeria and Africa to make major progress in income and density, technology and telecommunication must play vital role particularly in product distribution and accessibility.
That was why at the recently concluded African Insurance Organisation (AIO) held in Kigali, Rwanda, players agreed that “in order to harness the huge potential of its largely untapped informal economic sector and to draw from the success of pivotal efforts of M-PESA in mobile money operation, the African insurance industry should leverage on technology, especially telecommunications and mobile telephony in promoting financial inclusions.
“And this, they said, will work by making its products and services accessible and affordable for the people in rural areas, which will go a long way in breaking the cycle of poverty plaguing the continent.”
Ganiyu Musa, group managing director, Cornerstone Insurance plc, said the underwriting firm is delighted to be at the forefront of this innovative initiative, which will give Nigerians the opportunity to benefit from the security and peace of mind that this value-rich insurance product offers.
“With Airtel Insurance covered by Cornerstone, subscribers get affordability, trust and much more. Subscribers can get up to N500,000 of life cover and N50,000 of hospital cash in a year for free just by switching to Airtel and / or continuing to recharge on the network. This product is open to all registered Airtel subscribers age 18-65 and resident in Nigeria.”
According to him, the only qualification required to be part of this product is to recharge one’s Airtel line and the more the customer recharges, the more free cover you get. “The cover begins on the first day of the calendar month following qualifying airtime recharge and terminates on the last day of the calendar month, and registration for the product is by *259#.
The claims process, Musa stated, has also been designed to be simple and hassle-free. “Cornerstone is working with MicroEnsure, the world leader in mobile insurance, to bring world class expertise in policy and claims administration for the benefit of the subscribers to the Airtel Insurance,” he explained.
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