May 16, 2022

Soknacki2014

The Number One Source For Business

Living Without Insurance Amid Insecurity

Friday, June 11, 2021 / 10:16 AM / OpEd By Ekerete Ola Gam-Ikon / Header Image Credit: The African Courier

Proshare Nigeria Pvt. Ltd.

As tradition gives way to innovation in different aspects of our lives, we are
increasingly struggling to retain beliefs that have been held, sometimes even
as principles. One of such is that insurance business thrives when the economy
is performing and the purchasing power is good.

 

However, we have become challenged by the increasing
state of insecurity in multidimensional scale and concerns have heightened
about the ways we should live to avoid and survive potential attacks.

 

From basic travel advisory to lifestyle changes and
emergency management, we are engaging ourselves yet not much seem to have been
said regarding recovery management.

 

No one expects to be the victim of an attack whether
at home or on the road, but cases of deaths, injuries and disabilities are
reported daily. Sometimes, these incidents affect the economic activities of
the affected persons, keeping them away from work or business longer than
necessary due to the lack of funds to pay for medical care; besides the
inability of the entity to produce results in their absences, especially when
there are small enterprises.

Proshare Nigeria Pvt. Ltd. 

What Can We Do Now?

This has become the common question and many people
have not been comfortable when my answer is: Buy good insurance!

 

From further asking me “Where do you expect
anyone to get money to buy insurance now, when people cannot even eat?” to
wondering whether insurance companies will honour their obligations when claims
are reported, my responses have been two-sided with an edge like a coin.

 

Firstly, it is because no one knows what may happen or
who may be attacked tomorrow (weeks and months ahead), we can encourage
ourselves to purchase the basic Personal Accident Insurance that offers 24-hour
coverage within Nigeria, and in the event that the unexpected happens, the good
insurance provider can compensate the person or persons. This policy can be as
low as N1,500 per year for compensation of N500,000 or more, with access to
medical care of N50,000 or more.

 

Are you not better off having such an insurance policy
before you embark on a journey or merely going to your workplace many
kilometres from your residence?

 

As we now have affordable insurance products from
companies offering Microinsurance and Takaful, more Nigerians should be aware
and encouraged to take up policies that will hasten their recovery in case the
unexpected and unfortunate events occur.

 

Farmers, traders, transporters, students, security
personnel, journalists, health workers and officials of government at all
levels can get insurance covers now, to minimize the pains associated with ugly
incidents. Only in war situations will insurance companies decline covers for
interested parties.

Elsewhere, the concerns for our healthcare have increased since COVID-19
pandemic and so have insurance offerings, by a few leading insurers in Nigeria
and Africa.

 

In response to regulatory advice that we take personal
responsibility of ourselves amid COVID-19, we are faced with managing costs of
medical care and insurance has become the preferred financial instrument.
Unfortunately, not many Nigerians know this and especially Small and Medium
Enterprises (SMEs) continue to spend massively from diminishing margins with
little or no intention to adopt the option of insurance due to ignorance and
poor knowledge of how insurance works.

 

Promoting Insurance
Today

Insurance, unknown to many Nigerians, is meant to be
promoted by the National Insurance Commission (NAICOM), National Pensions
Commission (PENCOM), National Health Insurance Scheme (NHIS) and National
Social Insurance Trust Fund (NSITF). Interestingly, it has continued to be
presented as a law that must be complied with by individuals and organisations.

 

Operators, namely insurers, brokers, agents, fund
administrators, health maintenance organizations and employers of labour are
also merely pushing to implement what the laws say with little emphasis on the
value that insurance delivers even in times of uncertainty and insecurity as we
have now.

 

Who will dare to promote insurance today as a panacea
to the uncertainty and insecurity we face? Will Nigerians likely rush to the
insurance company that announces the sales of Personal Accident Insurance to
assist recovery from unexpected attacks? You can almost be certain of the
response.

 

So, how will insurance change in Nigeria and Africa to
truly earn its description and qualification as the BUSINESS of NUMBERS?
Probably by having more operators responding to the need and pain points of the
populace.

 

Migrating from generating insurance premium from large
corporate entities including governments to individuals and SMEs requires
regulatory actions on claims and data usage and the operators investing in
innovative solutions and partnerships that will ease the experiences of
policyholders.

 

With optimism, we have received the 2021-2023
Strategic Plan of NAICOM and look forward to the positive impact it will have
in the promotion of insurance as the tool we need to manage the new normal.

 

As we continue to work on resolving the issues of
insecurity, critical consideration should be given to the role of insurance -
health, life, pensions, social – in our lives. This is our personal
responsibility.

 

About The Author 

Ekerete Olawoye Gam-Ikon, MNIM,
CPP,
 is a management consultant with a specialization in Strategy and
Insurance. You can contact him via e:mail 
ola[email protected] and mobile +234-806-648-1111 

Proshare Nigeria Pvt. Ltd.

Related Articles by Author 

  1. Thinking of an Insurance Policyholder as a CEO
  2. Could We Have Saved UNIC Insurance?
  3. For a
    Better Tomorrow, Insure Today
  4. Why Insurance is Still Confusing to Many Nigerians
  5. Will You Buy Insurance Today?
  6. The Cost of
    the Protests to the Insurance Industry
  7. Customers Expectation and the Insurance Industry in A New Normal
  8. Our Youths, Insurance and the Future
  9. Cyber Insurance – Its Relevance in the Emergent Cyber Ecosystem
  10. Rethinking
    Insurance as a Social Service
  11. AfCFTA: A Call to Action for the Insurance Sector – OpEd
  12. How Insurance Can Help us in 2021 and Beyond
  13. The Olden Days of Insurance versus The New Digitizables – OpEd
  14. Why
    Corporate Insurance Business Thrives – OpEd
  15. Is Missing the Recapitalisation Deadline a Death Sentence?
  16. Is Insurance All About Claims?
  17. The
    Protests and the Challenges for Conventional Insurance
     
  18. Facts and Factors Behind Your Insurance Policies 
  19. Recapitalization: Types, Sizes and Shapes of What to
    Expect
     
  20. Nigeria Celebrates 60, Insurance
    Sings
     
  21. Financial Inclusion-Changing the
    Strategy for Growing Risk Protection
     
  22. How Policyholders’ Complaints Are Improving Service
    in Insurance
     
  23. Three Areas Digitization Will
    Transform Insurance
     
  24. Is Insurance a Government-led
    Private Business in Nigeria?
     
  25. Insurance: Switching from Hard
    Sell to Soft Sell
     
  26. Protecting Us Through Insurance of Public Buildings 
  27. The Battle of Principles: Insurance Versus Business 
  28. Insurance: Leading through Women 
  29. Insurance Sector: Drawing
    Lessons From Others
     
  30. Insurance Sector Leadership Changes and
    PolicyHolders’ Expectations
     
  31. Value Will Sell Faster And Longer 
  32. Democratize Insurance, Empower
    Citizens With Information
     
  33. Has the Insurance Act 2003 Made
    Nigerians Poorer These Past Five Years?
     
  34. Insurance Is For Others, Not You 
  35. Can Insurance Lead Nigeria’s
    Economic Stabilization?
     
  36. 20.Crisis of Identity Management,
    COVID-19 And Insurance
     
  37. The Stalemate of Claims Payment 
  38. 22.Is Insurance the Silent Guardian
    for Nigeria?
     
  39. 23.Insurance Before And After The Virus 
  40. 24.Insurances You Have, Unknown to You 
  41. Insurance of Stolen Properties 
  42. Insurance, Loved by Accident 
  43. Fires, Markets and Insurance 
  44. The Road Called
    Recapitalization?
     
  45. Making Insurance Work in Nigeria:
    Structural Realignment Required
     
  46. 30.What’s A Support System Without
    Insurance?
     
  47. 2019 – The Year of More
    Insurance
     
  48. 32.Insurance Recapitalization: Four
    Reasons Why NAICOM Should Be Transparent
     
  49. 33.Insurance – Good Product, Served
    Poorly
     
  50. 34.Why Fake Insurance Thrives in
    Nigeria
     
  51. 35.Rebuilding Trust In Insurance
    Relationships
     
  52. 36.Insurance and Nigeria’s Budget
    of Sustaining Growth and Job Creation
     
  53. 37.Making Claims Payment the Basis
    Of Performance Measurement In The Insurance Sector
     
  54. 38.5 to 9 Insurance Questions for
    Nigeria at 59
     
  55. 39.Insurance Broking: Is
    Diminishing Returns Setting In?
     
  56. 40.An External Memo To The
    President: How The Insurance Sub-Sector Can Help
     
  57. Where Are The Insurance
    Amendment Bills Of 2008 And 2018?
     
  58. 42.Kidnapping Insurance: Is It Hot
    In Nigeria?
     
  59. 43.The Insurance Sub-Sector: Its
    Challenges As Opportunities For All
     
  60. 44.Funeral Insurance – Bridging The
    Divide Between Culture and Financial Planning
     
  61. 45.Insurance Recapitalization in
    Nigeria: What Policyholders Should Do Now!
     
  62. 46.Nigeria: New Minimum Paid-Up
    Share Capital Policy For Insurance And Reinsurance Firms
     
  63. 47.The Benefits of Standardizing
    the Insurance Industry
     
  64. 48.Microinsurance And The New
    National Minimum Wage
     
  65. 49.Insurance In Nigeria:
    Approaching 2020 Without Digital Solutions?
     
  66. 50.PMB’s Second Term and
    Buharinsurance
     
  67. Meeting The Insurance Needs Of
    Digital Natives
     

Proshare Nigeria Pvt. Ltd.

Related News 

  1. Insurance Sector Update: Recapitalisation… Another Dead End?
  2. Insurance
    Recapitalization: The Quest for Efficiency
  3. Nigeria’s
    Insurance Industry Needs A Policy Roadmap – Ekerete Ola Gam-Ikon
  4. NAICOM
    Issues Public Notice on the Cancellation of Operational Licence of UNIC
    Insurance Plc
  5. For a
    Better Tomorrow, Insure Today
  6. NAICOM
    Corporate Governance Guideline: Beckoning Order
  7. AXA Mansard
    Promotes SMEs in Nigeria; Launches Business Insurance Plan
  8. Insurance
    Plan for SMEs in Nigeria: Better Safe Than Sorry
  9. Enterprise
    Group PLC Births Life Assurance Company in Nigeria
  10. Tangerine
    Life Completes Merger with ARM Life

 

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.