International and local insurers are reviewing their business activities this year with special attention on impact of the COVID-19.
According to them, the pandemic has brought about a lot of disruptions in their business model.
They pointed out that prominent among these changes was the emergence of insurtech companies and their new ways of doing business as well as various changes in customer service models and marketing system.
Insurtech companies offer online policy quotes and applications.
These companies also use underwriting algorithms that allow some applicants to purchase a policy online in one sitting.
But Nigerian insurers are divided in their views on the post COVID-19 insurance market.
According to Deputy President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Abiodun Duroduola, despite the disruption brought by the pandemic and other emerging issues, brokers will still remain relevant in insurance business.
He said the new normal will make brokers more creative in their business thinking and practice.
He said those who want to write off the place of brokers in insurance business because of the disruptions should bear in mind that there is always a place of human interaction in every market.
“In businesses like insurance of factory, insurance brokers will always have an edge. It is not a policy you buy online through digital marketing and pricing.
“An insurance broker needs to visit the factory, have one on one look at the factory, do the necessary inspection and be in position to advise the owner and the insurance underwriter,” he added.
He insisted that there are many businesses such as that, that digital marketing cannot deliver.
The Commissioner for Insurance, Mr. Sunday Thomas, said brokers, must change their way of doing things by looking at collaboration with underwriters in creating products and reducing competition.
For Managing Director, Scib Insurance brokers, Mr. Shola Tinubu, the pandemic has ushered in the era of digitalisation in insurance business.
He also said post COVI-19 opportunities would abound in areas which operators were yet to explore. He listed some areas of COVID-19 emerging opportunities as technology and innovation, opportunity in both life and health insurance, increased government investment in health sector.
He also noted that there would be major changes in pattern of businesses in the sector, pointing out that value creation would be critical, while pricing would be more competitive.
He said under this circumstance, insurers should strive to achieve maximum penetration of their product by making their policy statement concise, be conscious of claims as well as transparent in claims’ handling.
From the international insurance market arena, insurance expert, Alice Stevens of BestCompany.com, a customer review platform, said in the light of the pandemic, insurers should all through this year, expect five major developments.
According to her, these developments are emergence of more insurtech companies with their online marketing.
“The global pandemic encouraged people to practice physical distancing and do as many things as possible remotely. Online shopping and grocery pickup became more common. Insurtech platforms became more important as people looked for ways to buy insurance online.
“Insurtech companies will continue to play an important role in 2021. In the United States, cases are still on the rise. Even with the new vaccines, an end to physical distancing guidelines likely won’t be immediate.
“The ability to conveniently purchase insurance online or with an option to work with a licenced agent will still be important for buying insurance,” she stated.
She further said insurance business in 2021 has witnessed more personalisation in service delivery.
“The 2019 PwC fintech survey found that companies need to emphasise personalisation in addition to offering convenience and efficiency. Insurers have been developing policies that are customisable, and this trend will continue.
“For example, some life insurance insurtech companies have developed new policies that are far more personalised than traditional products. These innovations include policies with the ability to adjust coverage levels manually or automatically based on an algorithm,” she added.
She observed that most auto insurers have developed models that allow customers to get personalised premium rate based on their actual driving habits tracked through an app.
