Major insurance consumers have demanded for efficient service delivery, prompt claims settlement, robust information technology deployment, engagement of qualified personnel and ethical practices from insurance operators.
The consumers at an Insurance Consumer forum organised by the National Insurance Commission (NAICOM) in Lagos, bore their minds when the Commissioner for Insurance, Muhammed Kari, who presided over the event, urged them to state their issues and challenges without reservations.
At the bare all session, President/Chief Executive, Dangote Group, Aliko Dangote, represented by the Group Chief Risk & Insurance Officer/Group Chief Procurement Officer, Dangote Industries Limited, Dr. Adenike Fajemirokun, disclosed that insurance companies have no representative in other Pan African countries to protect Nigerian businesses and issue Pan Afican policies.
According to Dangote, there is the need for the operators to expand insurance coverage to the Pan African countries through partnership with other insurers in these countries.
He said the lack of representative of insurance companies abroad is frustrating businesses abroad.
Dangote, he said, started business as a commodity trading company more than 30 years ago. And transformed from a bulk commodity trading company to a manufacturing concern through import substitution strategy along the Group’s traditional business lines.
He said: “The company has diversified into infrastructure, agriculture, fertilizer, petrochemicals, steel and oil & gas. Today, we have expanded our cement footprints in Nigeria and across Africa. We need proper insurance coverage for all of our business.
“As an insurance consumer, we are limited to where we see that there is no expansion of Nigerian insurance companies into the Pan African countries where we have businesses. We are insuring our business not because of compulsory insurance or regulation, but an internal principle to ensure that any risk that is within or not within our appetite is transferred. For us, the main transfer mechanism is insurance and I believe this is the case for many consumers.”
He added that he expected insurers to have mastery of insurance and deep understanding of the sectors we operate in.
“They must have full understanding of our business, emerging trends in the local and international insurance markets and emerging trends in the local, regional and global economy. We expect insurers to continue to add value to our business. But how well do insurers understand our business? What do they know about cement, oil and gas amongst others? Part of our class of insurance are in commercial vehicles, goods in transit, group life assurance, group personal accident, industrial all risks, private motor, marine, open cover plantation and fire boiler marine
Corps Marshal, Federal Road Safety Commission (FRSC), Boboye Oyeyemi, on his part urged the operators to develop innovative products, services and experience, have appropriate pricing of risks and prompt payment of associated premium and encourage good road safety practices.
He also tasked the operators to embrace robust digital technology, have continuous improving customers experience, robust clients enlightenments, policy information dissemination and feedback, timely claims payment and other unique virtues.
The Inspector-General of Police (IGP), Ibrahim Idris, represented by Deputy Commissioner of Police(DCP) in charge of Administration, Elkanah Ayuba, urged insurance operators to be prompt in settlement of claims, especially to Police personnel and engage in sensitisation of police rank and file, not just focusing on the officers at the Police Headquarters.
The Nigerian National Petroleum Corporation (NNPC) representative urged insurance practitioners to liaise with organisations to ensure that their insurance departments are manned by insurance professionals.
Consumers Protection Council (CPC) Director-General, Babatunde Irukera, urged operators to improve their image through efficient service delivery and prompt claims settlement.
Kari further informed stakeholders that the Commission will continue to engage them, maintaining that the Commission intends to hold the engagement bi-annually to foster a mutual relationship among the Commission, the insured and the insurers. “We believe such regular interface will afford us the opportunity to listen to your ideas and contributions towards making the industry as consumer friendly as possible.
“Above all, we are optimistic that after this interaction, we shall witness improvement in service delivery to consumers by insurance entities. There is no doubt that our competitive environment and the changes in the world economy as a result of globalisation, deregulation, privatisation, financial meltdown, and the modern advancement in technology give insurers the opportunity to transform their business operations and realigned with customers by understanding the needs of the consumers and ensuring an enhanced and efficient delivery of products and services. We are aware that the satisfaction of consumers of product and services plays a vital role in the sustenance of any business.
“The difference between great and poor customer service has always been clear and businesses on the wrong end of this spectrum usually pay a price. This is as true for insurance as it is for any other customer-facing business. Today, the consequences of subpar service are amplified by the speed and reach of social media. One poorly handled claim, one mistake captured on a smart phone could escalate quickly into a brand-damaging crisis. This is why we believe that it has become imperative that insurance firms increased their focus on providing great customer experience.
“My task here is not to give a lengthy speech or lecture but to welcome you to this session and perhaps set the tone for our discussion. However, permit me to quickly advise insurance operators that providing a strong customer experience is not just about reducing the risk of customer service mishaps. It is increasingly a way for companies in competitive markets to distinguish their brands. Delivering a superior customer experience takes more than developing a mobile app or adding a call centre staff. It requires significant investments, relentless improvements, and collaboration across customer channels and business functions, from distribution and underwriting to claims handling.”
According to him, understanding what customers want is paramount in building a better customer experience. “However, the Commission in recent time have noticed certain behaviours and actions of consumers that are not in sync with this believe, which is detrimental and dangerous to the insurance industry in Nigeria,”he said.
He continued:”We have seen situations where the insured (consumer) in connivance with insurance brokers, allot proportion of risks to local underwriters without due cognisance of the insurers’ capacity; preferring to place risk abroad even when the local market is not saturated. Some consumers also in alliance with intermediaries chose to exclude some underwriters from participation in underwriting certain risks without cogent tenable justification.”
The Commission, he said, frowns at these practices and want to use the medium to inform such consumers to desist from the practices “as they run counter to our regulations”. “Where we have noticed such practices, we have rejected applications from operators for approval to cede such risks abroad. This action of the consumer/broker sometime leads to delays in placement of the risk even when the insured has paid its premium to the intermediary. While the Commission is not averse to ceding of risk offshore, it must be done only when the local market has taken the much its capacity would allow,”he said.
