A former Minister of State for Finance and current Chairman of the Board of Directors of Law Union and Rock Insurance Plc, Mr. Remi Babalola, has advised registered insurance brokers on the need to expand their role beyond facilitators of risk transfer.
He said they could also help people keep pace with major developments to ensure the stability of their businesses in the face of economic challenges.
He said this while making a presentation on ‘The future today’, at the national conference of the National Council of Registered Insurance Brokers in Abuja.
“As insurance brokers, members of this council need to expand their role beyond facilitators of risk transfer to helping their clients keep pace with the steep developments influencing changes in the Nigerian society,” he said.
While baring his mind on how the brokers could stay relevant in the insurance business in Nigeria, he said that the future was only guaranteed for insurance brokers that were analytical, innovative with expertise in risk identification, management and transfer.
He bemoaned the 0.43 per cent insurance penetration rate, the less than $5 insurance density in the country and its less than one per cent contribution to the Gross Domestic Product.
He, howver, affirmed that there were abundant opportunities for growth.
Babalola identified information advantage as a game changer for insurance brokers who wish to differentiate themselves in offering cutting-edge solutions in remaining relevant both in the present and the near future.
The former minister explained that the retail segment of the insurance space remained the future of insurance business market in Nigeria given its untapped growth opportunities, adding that there was a need for the insurance brokers to deploy technology to unlock the growth potential while engaging in constant public enlightenment to sensitise the market segment to increased penetration.
He charged members of the council on the need to place the interest of their clients above all while applying professionalism, integrity and independence.
Babalola also said that it was important for the insurance brokers to constantly identify and develop viable and innovative solutions to the changing risk environment.