The Group Managing Director, Cornerstone Insurance Plc, Mr. Ganiyu Musa, has said that there is a need for insurers to explore better distribution channels and technology to make insurance more accessible.
He said this in a paper on: ‘Critical success factors for market expansion and penetration strategies’, in Abeokuta, Ogun State.
“Insurers should explore opportunities offered by the banking distribution platforms, use of technology to improve products distribution, leverage on the 126 million active lines to boost insurance penetration (mobile phone ownership in urban 84.9 per cent) and rural (55.6 per cent),” he said.
Musa also said the operators should maintain price discipline to deal with rate-cutting, adding that there should be greater collaboration between the underwriters and brokers.
The insurer explained that there should be an alignment of innovative products with customers’ real needs and increased micro-insurance penetration in new segments such as agriculture.
Musa called for the enforcement of the compulsory insurance policies through collaboration with other relevant stakeholders as well as an improved tax environment for operators and policyholders.
Stressing the need for improved human capital development, he advised insurers to attract new and diversified talent base in order to meet changing customer demands.
He urged underwriters to develop a series of trainings and customised insurance offerings to small and medium enterprises, considering the nature of risks faced by the segment.
Musa also advised the industry to partner banks and other financial sector operators on the financial inclusion and literacy programmes to drive insurance literacy and awareness.
He recommended joint intensive awareness campaign among operators to educate the masses on the benefits of insurance through media relations.
“The insurance industry is an important component of the financial system in any country. It mitigates risks and provides the foundation for smooth the functioning of all business activities, promotes savings and investments, and increases the overall financial assets in any economy,” he said.