Nigerians’ demand for car loans and insurance hits 65% growth

By Jonah Nwokpoku

 

Demand for loan facilities and insurance products through the internet have increased significantly by over 65 per cent, according to a survey by online vehicle marketplace, Carmudi.com. Carmudi said its several partnerships with lenders and insurance providers to make services available online especially for online car shoppers have seen over 65 per cent subscription for car loans and 35 per cent subscription for auto insurance. According to the online car dealer, “Many loan and insurance providers are now making use of Nigeria’s growing internet penetration and smartphone usage to advertise their services and connect with customers directly.

 

In 2014, only 2.5 million vehicles had valid insurance meaning that more than 85 per cent of the 15 million cars plying the Nigerian roads were insured. The number was much lower in 2012 and 2013. “The last quarter of 2015 saw an improvement in the number of car insurance policies bought by car owners. According to the  Nigerian Insurers Association (NIA)  an estimated 3 million Nigerians had valid car insurance at the end of 2015 and by the end of the first second quarter of 2016 the number of car insurance holders is estimated to rise by 39 per cent.”

 

Analysts believe that that the rise in the number of insurance policies could be attributed to the increase in internet penetration and the use of mobile and other digital marketing and information services. Factors such as easy access to information on the various policies, ability of customers to request insurance policies online and also easy payment through bank transfers and other e-payment platforms are all evidence of the importance of the internet to the insurance sector.

 

The Carmudi survey also pointed out that financial service providers have also seen a spike in the amount of people wanting loans especially for cars, as they continuously seek partnership with online classified website for cars, real estate, logistics and travels to offer customers easy access to loan facilities. Recall that Carmudi Nigeria in recent times commenced partnership with various financing and insurance service providers with the aim of offering car shoppers the opportunity to apply for car loans and insurance via the Carmudi website.

 

Source: Vanguard