Microfinance bank targets N40bn from insurance

Microcred Micro-Finance Bank (MFB) has diversified into micro-insurance services, seeking to generate about N40 billion from the Lagos market within the next four years.

The diversification is coming barely three months after the Kaduna-based outfit secured a licence from the CBN to offer its services nationwide.

The diversification has set the company on course to grabbing up to 300,000 insurance customers in Lagos, according to official records of the company seen our correspondent.

The Chief Executive Officer of Microcred MFB, Mr Kazeem Olarenwaju, told reporters in Lagos on Monday that the diversification was to sustain the company’s growth and leadership position.

He said that Microcred MFB had entered into partnership with AXA Mansard, a member of the global AXA Group, to give clients multi-faceted insurance services.

“Through a partnership arrangement with AXA Mansard, Microcred Nigeria will provide its clients multi-faceted insurance services, covering life and non-life insurance.

“Losses associated with death, burglary, fire and special perils should now become a thing of the past.

“Never shall our clients lose their business to any disaster as all clients are to be educated and supported to ensure that their assets are insured at an affordable rate,’’ Olarenwaju stated.

According to him, the insurance service has multiple advantages as it provides cover for clients in the event of unforeseen circumstances.

He said the service would also protect banks against possible losses as well as ensuring convenience of payment of premiums and receipt of claims by beneficiaries.

“This project is to safeguard the interest of the business community in Nigeria,’’ Olarenwaju added.

The Deputy Chief Executive Officer of the company, Miss Isabelle Levard, pledged that the company would give its Lagos clients a new customer experience.

Isabelle, who is also a board member of the company, said the outfit would exploit the huge business potential in Lagos to consolidate its leadership position.

“We want to ensure that clients are protected and will not lose their goods to any insurable risk.

“We plan to enlist over 300,000 customers in Lagos and its surroundings within the next four years, targeting over N40 billion from various insurance products,’’ she stated.

The Divisional Director, Retail Solutions of AXA Mansard, Mr Yomi Onifade, described the Nigerian insurance industry as largely under-penetrated.

“As a leading non-banking financial service group, we are poised to offer unparalleled products and services to Microcred’s clients by ensuring that their risks are adequately covered.

“The targeted clients have every reason to be excited and happy as their losses would be minimised going forward. We are excited to partner with Microcred to achieve its growth aspirations in Nigeria while also growing insurance penetration,” he said.