The Executive Director, Corporate Banking, Ecobank Nigeria, Mr. Akin Dada, has advised Nigerians to see insurance as a way of life.
Dada said this at an insurance roundtable event organised by Ecobank Nigeriaâ€™s Securities, Wealth and Asset Management (SWAM) unit in Lagos.
He also said there was also need for the banks to work with the insurance companies to break the barriers of insurance penetration.
â€œInsurance penetration has always been a major barrier. We are working with the insurance companies to see how we can unlock the opportunities in the sector. Tax incentive will enhance awareness in the sector,â€ he added.
Earlier, the Managing Director, EDC Fund Management, Ecobank, Mrs. Ibukun Oyedeji, explained that the insurance roundtable was set up to be a forum that would bring all insurance companies together to discuss the market and the pertinent issues in the industry.
She noted that although the insurance industry has a lot of potential, it has always remained in the infant stage and has struggled over time.
â€œThere is need for more collaboration between the insurance and banks.
â€œAlthough the regulator has advised on the Bancassurance, one of the things we think is the way outside the regulatorâ€™s-imposed collaboration is that we as practitioners need to make sure that the collaboration comes as improved synergy to see how well we can cover the entire Nigeria, especially the masses.â€
According to Oyedeji, with 50 per cent of Nigerians as working class, there is need for increased awareness on insurance.
â€œIf a merger happens in the market, which I think needs to happen, I think in the long term, insurance would be a buy for me.
â€œI think a lot of time, what has happened in the industry is the mis-selling by the agents.
â€œA lot of agents to meet their targets, sell the wrong insurance and you donâ€™t know. You keep paying for that insurance until when it is time to claim the insurance. This is a business of trust and once there
â€œI see fintechs not as a challenge, but as a penetration strategy. For me, there are two strategies in Nigeria that would work: financial planning and technology,â€ she explained.