According to Ebere Nwoji, members of the insurance-buying public have high expectations for the operators this year as they boost their efforts to achieve their goals of insurance penetration. Undoubtedly, the Nigerian insurance sector has joined other business communities across the globe in ringing in the new business year of 2023 with greater expectations, a plethora of business offers, and a desire for more turnover, profitability, and returns on investments. The insuring public, from whom these premium streams are anticipated to come, also demands from the insurers nothing less than quality and satisfactory services, characterized by efficient claim processing and settlement.
Indeed, judging by their actions and demeanor from the previous year, members of the insurance public don’t appear to be willing to accept any service delivery decisions made by insurance companies that fall short of their standards this year. Because this big-boss customer has the power to put out of business even the regulator, all segments of the industry must be prepared to contribute their fair share to ensuring maximum satisfaction and pleasing of this big-boss customer. Due to this, numerous insurance companies and other parts of the industry should be ready to get the year off to a great start.
Mutual Benefit Assurance pledged to focus on customer satisfaction.
Few days ago, Mutual Benefit Assurance set the standard by hosting the 27th edition of its annual thanksgiving and staff award. During the event, the company thanked God for allowing it to operate an insurance business in Nigeria for 27 years, thanked its customers for their support over the years, and vowed to prioritize customer satisfaction in 2023. In order to prepare operators’ minds for the new business year, the Chartered Insurance Institute of Nigeria is holding its annual insurance breakfast and brainstorming session.
As the new year develops, industry observers and members of the insurance public are eager to see what form the industry will take this year while both the regulator and other arms of the business are actively thinking of new ways to push the industry to a higher level. The National Insurance Commission (NAICOM), which already took a step similar to what it did in the industry ten years ago in implementing the “no premium no cover aspect of insurance Act 2003 by increasing the compulsory motor insurance rate on January 1, 2023, is one of the arms of the industry that are expected to contribute towards reshaping and repositioning the industry.
Despite the high rate of inflation, vehicle insurance has remained stable.
The commission increased the premium and claims due for motor insurance policies in Nigeria by at least 200 percent on January 1 of this year. Despite the country’s high rate of inflation, the premium rates for vehicle insurance, particularly motor third party insurance, have remained stable for more than 20 years. The end result was that many insurance companies turned to claims from the policy as inflation rates rose, resulting in high repair costs for damaged vehicles without a corresponding increase in premium paid. They did this by preying on the public’s ignorance of the claims payable under the policy.
However, on January 1, 2023, NAICOM revised the policy’s premium rate and the amount of claims that would be paid. As things stand, many people who now have vehicle insurance with reputable insurance underwriters are apathetic about renewing it because they are uncomfortable with the rise. Many people would choose to renew their insurances with sellers of phony insurance certificates who are willing to accept meagre payments in exchange for issuing them with fake certificates. Because of the increase in premium rates, underwriters at insurers complain that they are losing clients. As a result, some are selling policies, particularly Motor Third Party insurance, below NAICOM’s stated rate.
The objective of the Commission is to ensure effective administration.
In addition to working with the Nigeria Insurers Association to close any gaps that would allow premium leakages in the sale of motor insurance policies, NAICOM’s big task is to ensure that the new rate is enforced. Additionally, it is anticipated that the commission will consolidate its efforts to raise public knowledge about insurance and give the other five mandatory insurances in Nigeria considerably more attention this year. The Commission was established with the intention of ensuring efficient administration, monitoring, regulation, and control of the insurance industry in Nigeria.
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