“The insurance sector settled 912 burnt sites, 718 vandalism claims after the SARS protest”

The President of the Nigerian Insurers Association (NIA) and Group Managing Director, Cornerstone Insurance Plc, Mr. Ganiyu Musa In this interview with Ebere Nwoji, spoke about the impact of the #EndSARS protest on the insurance industry. assurance

The EndSARS protest that resulted in losses and huge claim payments for businesses in different parts of the country and their insurers has come and gone, and it’s a year on, can you tell us the impact of the protest? #EndSARS on the insurance sector in the country?

The first anniversary of the protest was a fortnight ago and as an industry severely affected by the protest it was an opportunity for us to take stock and display our dashboard in the field of payment of claims. What started as a protest against the national anti-theft police unit then turned into a crisis of unprecedented magnitude with resulting loss of life and property.

In the wake of huge losses suffered by businesses as a result of the #EndSARS violence, the insurance industry, in line with its role of financial intermediation and rapid business recovery, has stepped in to provide the necessary cushion for those who have insurance coverage and others who have suffered losses for their businesses.

The report shows that insurance companies settled 718 vandalism claims; 93 cases of looting; 113 on the flight; and 136 for loss of money, three death claims were paid while claims were paid for other loss of property, 99 claims were settled for malicious damage; eight business interruption claims; 455 burglary claims and 912 fire and fire site claims. We will continue to update our records as we go and when the process is complete we will let Nigerians know.

Let me assure you that the insurance industry, in line with its role of financial intermediation and business recovery, will continue to provide the necessary cushion to those with insurance coverage and others who have suffered losses for their businesses.

The insurance industry recently made President Muhammadu Buhari its big boss. What impact would this have on the insurance business?

Conferring the title of Grand Patron on President Muhammadu Buhari is a positive and welcome development that the industry will continue to cherish for a long time to come.

Having the President of the Federal Republic of Nigeria is no small feat and it attests to the highest level of recognition and approval or approval, as the case may be.

I think this will have a positive impact on insurance business because it will: encourage more sponsorship and government recognition; strengthen regulatory and capital requirements to ensure solvency and sustainability; introduce reforms that will help deepen insurance penetration as well as its very crucial to boost consumer confidence and public awareness, although this will challenge operators to act more ethically, among others.

What steps are you taking to ensure that insurers maintain the current momentum provided by the just concluded AIO conference?

Several initiatives introduced by industry and regulator (NAICOM) are underway and will be further strengthened to maintain the current momentum brought by the conference. These initiatives include:

developments policy implications; a stronger and more coherent policy and regulatory response; capital adequacy and solvency for the proper functioning of insurance companies; supervisory cooperation; cross-cutting issues; reports – timeliness and relevance; effective risk-based supervision and tools; reinsurance oversight and mechanism to ensure that standards and guidelines are fully implemented.

At the AIO conference, the president and his vice president challenged the insurance industry to take advantage of the huge opportunities in the industry to grow the economy as a whole. What will your administration do to meet and exceed government and public expectations?

The insurance industry makes an important contribution to the economic development and well-being of a nation by enabling risk transformation. In this way, the insurance sector supports investment, innovation and economic growth, thus ensuring a healthy and performing insurance sector. Insurance transforms accumulated capital into productive investments, mitigates losses and promotes financial stability as well as trade and commerce, resulting in sustainable economic growth and development.

Insurance ensures the safety and security of individuals and businesses: Insurance provides an ideal risk mitigation mechanism against events that can potentially cause financial hardship to individuals and businesses.

Insurance generates long-term financial resources. The sector generates funds in the form of premiums from millions of policyholders. Due to the long-term nature of these funds, they are invested in building long-term infrastructure assets (such as roads, ports, power plants, dams, etc.) that are important for nation building and employment opportunities are also created. Therefore.

Likewise, insurance provides support to families during medical emergencies. The well-being of the family is important, and the health of family members is the biggest concern for most. From elderly parents to newborns, medication and hospitalization play an important role in ensuring the well-being of families.

The rising cost of medical treatments and the skyrocketing cost of over-the-counter drugs are enough to deplete an individual’s savings. Anyone can fall victim to serious illnesses (such as heart attack, stroke, cancer, etc.) unexpectedly.

Medical insurance is a policy that financially protects individuals against different types of health risks and with a health insurance policy; an insured can obtain financial assistance in the event of a medical emergency.

Insurance facilitates the transfer of the risk of loss from the insured to the insurer. The basic principle of insurance is to spread the risk among several people. Each time a disaster occurs, it is compensated from funds collected from the many insured.

What is your perception of the AIO conference which has just ended?

There is a lot to learn from the conference that will help deepen insurance penetration and grow the market.

First, the conference was an opportunity for workforce development for attendees through learning from presenters.

It has also enabled regulators across the continent to review and learn from the regulatory frameworks of different regions.

It was a marketing opportunity for companies and brands as well as an opportunity for peer review and standardization of processes.

Moreover, it provided the foreign delegates with many opportunities to experience the warmth, hospitality, splendor and rich culture of our country, thus changing some negative perceptions of Nigeria.

What is your message to NIA members regarding product development?

What has become clear is that product development can no longer be done in silos, with one function creating products for another function to sell. Insurers are committed to making every mobile part of their business serve the customer, and that means every part of the business has a contribution to make in creating customer-centric products.

Insurers are just beginning to exploit the opportunities to create technology-driven products. However, the biggest problem these days is that the underlying products are not yet ‘digitally ready’, although everyone is talking about digitization and disruption and modernizing their core systems with huge investments in order. to support these new trends, even the new ones. The biggest risk the insurance industry faces when it comes to innovation is not taking enough risk. Real innovation comes through experimentation, which most of the time ends in failure. Insurance companies are designed to take failure out of their culture. Without failure, you cannot have any innovation. CEOs demand a positive return on investment (ROI), they now need to research and understand what it means to have a positive return on risk (ROI).

You don’t really need to invent new products in my eyes, you just need to make existing ones simpler and more ‘digital native’. Today’s products were and still are created for the non-digital. And this not only complicates new digital processes for customers, but also makes core replacements and automation more complicated and expensive than necessary.

Most innovations in product development will occur where smart connected devices drive new business models based on behavioral data.

I particularly expect price improvements. UBI is a bigger game changer than coverage of events that are not insured today. Either way, there will be a huge need to understand, measure and manage rational and irrational behavior.

The cost of customer acquisition is a critical metric for marketing efforts. Lifetime Customer Value also helps us know how much we should spend to acquire as well as how we should increase our share of the portfolio in the products we offer.

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