For the nation’s insurance industry to harness its growth potential through deeper penetration, the sector must embrace technology to increase consumer access, particularly in the rural areas, stakeholders said at the 2015 Insurance Round Table, held Thursday in Lagos.
They believe that riding on mobile technology has become necessary to close insurance product distribution gap, enhance premium collection, reduce agency fraud and also build consumer confidence.
The event held in Lekki, Lagos, was organised by BusinessDay Conferences in partnership with Old Mutual Nigeria and supported by MTN.
Gbenga Odegbami, general manager, Computer Warehouse Group (CWG), who represented Austin Okere, the group managing director of CWG, said the insurance sector contribution to GDP, at less than 0.5 percent, was abysmally low given the huge potential available in the industry.
Speaking on the theme ‘Harnessing Mobile Technology to Boost Insurance Penetration in Nigeria,’ he said insurance companies need to scale-out to reach the mass population in the rural areas; come up with value proposition products, develop payment plans and create more awareness to enhance literacy level.
Rachael Emenike of Old Mutual Nigeria, in her remark, said the country’s insurance industry remained driven by a demographic character of large population of over 170 million, urbanisation and growing middle-class.