Why insurance companies run after government businesses — NAICOM
By Favour Nnabugwu
WITH changes in consumers’ lifestyle and preferences, pricing and marketing insurance products has become constantly evolving challenge for insurance companies, according to the Commissioner for Insurance, Alhaji Mohammed Kari.
Kari, in an interview with Vanguard Insurance in Kampala, Uganda, on the sidelines of the recent African Insurance Organisations’ Conference, said personal line business is a daunting task for insurance companies due to huge investment and little result.
“People buy (insurance) only when they have excess spending ability and unfortunately the economy is bad now and most people relegate insurance to the background in the list of their budget.” Insurance companies that have dared to veer into reel time personal lines sweat under the investment while they get little or no result at the end of the day.
Kari who was not pleased with the situation, attributed the crave for government insurance business to the apathy of individual Nigerians towards insurance.
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“The corporate clients realise that insurance is part of them. There is no oil and energy provider that do not appreciate insurance, there is no marine company that does not value insurance but it is the individuals’ awareness that is lacking and if we can change that a little, the impact would be huge.”