A new report says 97% of Nigerians remain uninsured, leaving them vulnerable to unexpected financial shocks and setbacks.
Dr Usman Jankara, National Insurance Commission (NAICOM) Assistant Director, Corporate Strategy and Special Duties, made the disclosure in a recent paper he delivered at the recently held journalists’ seminar in Uyo, Akwa Ibom, titled: “Insurance sector and the Nigerian Economy: Impact, Challenges and the new Frontiers.”
“Concerning the number of those insured, it is put at three million. As at last year when the figure was taken, Nigeria is assumed to be 200 million.
“Our insurance penetration rate, that is insurance to Gross Domestic Product (GDP) is 0.4 per cent. The insurance density, that is, how many Nigerians are insured, is 1.5 per cent,” he revealed.
In response to this, the Head of partnerships, Coronation Insurance, Kehinde Grillo, says, “Insurance plays a vital role in mitigating risks and providing financial security to individuals, families and businesses. However, despite its importance, a significant part of the population remains uninformed about the various aspects of insurance. This lack of knowledge can lead to missed opportunities for protection and financial stability.”
“While insurance covers a wide array of scenarios, including health, auto, home, life and business-related risks, many people lack a comprehensive understanding of how insurance works and why it’s essential,” Kehinde continued.
Consequently, Coronation Insurance has emerged, determined to reshape the landscape of insurance in Nigeria. With a strategic vision and a commitment to inclusion, Coronation Insurance is on a mission to close the gap and extend the protective shield of insurance to every Nigerian doorstep.
Understanding the landscape
Nigeria, with its vast population and dynamic economy, holds immense potential for insurance growth, just as Dr Jankara confirms:
From 2015 till date, when you look at Gross Premium Income of the industry, we were at ₦282 billion in 2015, and today it is ₦736 billion, representing average growth of 15 per cent.Usman Jankara
Yet, the stark reality is that only a mere 3% of the population currently holds insurance coverage. This disparity highlights a considerable gap in safeguarding the financial well-being of the majority. Whether it’s health, property, or livelihoods, the lack of insurance coverage exposes individuals and families to avoidable risks. This can disrupt lives and erode hard-earned savings.
Therefore, Kehinde says Coronation Insurance has “identified that the most important factor to penetrate this untapped potential market is to develop bespoke insurance policies based on clients’ needs and wants.
“We work with our clients to understand what their personal or business insurance needs are, and we develop a bespoke policy to meet that need. Over the years, we have learned that the best way to succeed is by creating value, which occurs when it meets the exact needs of the client.Coronation Insurance, Kehinde Grillo
“At Coronation, we have observed that the terrain is changing and to overcome the challenges, we have to be creative and innovative in responding to client’s insurance needs and wants.”
Coronation Insurance’s pioneering approach
At the heart of this issue stands Coronation Insurance, a company committed to transforming Nigeria’s insurance landscape. Recognising the urgency and importance of the task, Coronation Insurance has devised a simple approach. This is to bridge the gap and extend the reach of insurance to the underserved segments of society.
Tailored solutions for all
Coronation Insurance understands that every Nigerian has unique needs and concerns. From micro-insurance offerings to comprehensive coverage, the company has crafted a range of products that cater to diverse segments of society. By addressing the specific requirements of individuals, families, and businesses, Coronation Insurance ensures that insurance becomes a relatable and accessible concept for all.
Innovative outreach strategies
Closing the uninsured gap necessitates innovative outreach strategies. Coronation Insurance leverages technology and partnerships to break down barriers to entry. The company reaches individuals who might otherwise not know about insurance through collaborations with mobile networks, fintech platforms, and community organisations.
Empowering Nigerians with insurance require more than just selling policies; it involves fostering financial literacy. Coronation Insurance is committed to educating the public about the benefits of insurance and its role in safeguarding against unforeseen challenges. Through thought leadership articles, webinars and digital campaigns, the firm aims to shift perceptions and instill a sense of security among Nigerians.
Easy claims process
One of the key deterrents to insurance adoption is the perceived complexity of the claims process. Coronation Insurance recognises this challenge and has streamlined its claims procedures, ensuring that policyholders experience prompt and hassle-free reimbursements. This transparency builds trust and reinforces the value of insurance coverage.
To add, Kehinde says, “Looking at the top 10 major concerns of an average Nigerian, financial stability will rank amongst the top three, yet a major tool for driving this financial stability which is insurance for every key area of personal life and business will rank at the bottom two.
“We have developed solutions such as:
- Marine portal (which gives access to corporate bodies to access marine insurance at their convenience)
- Agent application: this allows our agents onboard retail clients from anywhere at any time, with ease and convenient for the client. We create and issue policies to clients in real time and instantly.”
We [Coronation Insurance] have an available self-service application that allows clients to process their claims and get paid within 24 hours.
Empowering lives, transforming communities
Coronation Insurance’s efforts to close the uninsured gap transcend mere numbers; the business is active about transforming lives and communities.
- By offering comprehensive health coverage, the company contributes to a healthier nation.
- By safeguarding property, it promotes stability and resilience.
- By insuring livelihoods, it encourages entrepreneurship and economic growth.
Coronation Insurance’s collaborative approach
Closing the uninsured gap is not a solitary effort but a shared responsibility. Coronation Insurance collaborates with stakeholders, policymakers, and regulators to create an enabling environment that fosters insurance adoption. By engaging in constructive dialogues and advocating for policies that promote financial inclusion, Coronation Insurance amplifies its impact and drives systemic change.
“To penetrate the market effectively, we have been establishing partnerships with like-minded organisations. Partnership has created the opportunity to introduce insurance outside the insurance industry. Through partnerships we have been able to embed insurance into the lifestyle of clients,” Kehinde notes.
He says through partnerships, Coronation Insurance has:
- Access to new geographic markets
- Access to new customers
- Access to new industries
- Access to new/emerging technologies
- Ability to strengthen our innovation capabilities
Looking ahead: A transformed landscape
The journey to close the uninsured gap is not without its challenges, but Coronation Insurance remains unwavering in its commitment. As the company continues to innovate, educate, and extend its reach, a transformed insurance landscape emerges on the horizon. Coronation Insurance stands a beacon of hope in Nigeria’s quest for financial resilience and security.
“Insurance is far more than a mere financial product, it is a lifeline that provides security, peace of mind and a foundation for responsible long-term planning. Closing the knowledge gap surrounding insurance is essential for individuals to make informed decisions that protect their financial well-being,” – Kehinde Grillo.
The 97% uninsured statistic may paint a bleak picture, but Coronation Insurance’s commitment to closing this gap brings a ray of hope. With a pioneering spirit, innovative strategies, and a profound sense of responsibility, the company is redefining insurance in Nigeria. As Coronation Insurance embarks on its mission to extend coverage, transform lives, and empower communities, a future where every Nigerian is protected becomes an attainable reality.
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