Insurance: Which Comes First, The Market Or The Industry?
By Ekerete Ola Gam-Ikon
The answer to the above question may seem obvious to the matured mind but challenging to the one who is growing in his/her career or endeavour, hence the need to appraise it.
Depending on your position, you’re bound to argue that the other will not be there if not for you and the argument goes on.
What’s the point of such argument anyway?
Insurance, by the story of its origin, was started by sea merchants who had experienced losses and decided to create a pool from which they could compensate any of them that lost merchandise.
At the time, there were no insurance companies, no reinsurance companies and no regulators, but subsequently, the pool created by the sea merchants became the origin of the insurance industry we have today all over the world.
This might be the way many other industries began; after all, they’ll first be human beings before groups, associations or organizations.
Today, the insurance industry continues to express the spirit of those sea merchants despite the formal layered structure it has assumed, and other insurance stakeholders recognize the critical position of those first parties!
As a customer-focused business, whatever decisions that are taken by the regulator, reinsurers and insurers must be extremely mindful of those first parties – policyholders (sea merchants, if you like).😊
So, do you perceive this to be the case? What do you see from your position, not only for the insurance industry but others that you’re involved in?
I’m keen to know as we need to rest this argument of “if not for me, you’ll not be there”, which comes up when excellent service is desired or demanded.
Fuel Subsidy Removal: Special Insurance Advisory For All Stakeholders
As you are aware, we have already released our Insurance Advisory for the month of June 2023 titled “Are You Sure You’re Insurable “, but on the back of the national impact of the Fuel Subsidy Removal, it has become necessary to release this Special Insurance Advisory to the Three (3) Key Actors encompassing the stakeholders.
Importantly, Fuel Subsidy can be considered to be a form of insurance against the impact of pricing at market rate. With its removal, we (all stakeholders) are exposed to a new life without that form of insurance but able to take on another form, which is even more formidable.
ADVICE 1: To the Presidency of Bola Ahmed Tinubu, acknowledge that the people have ALWAYS NEEDED TO BE INSURED against the rising uncertainties of time, which is why the past governments made some classes of insurance compulsory. Let the compulsory classes of insurance be enforced across all levels of government during the tenure of your administration and assure workers of a secured future. Enhance the Group Life Assurance with a tinge of welfare to enable workers receive 30 percent of the sum held as benefits upon retirement or exit from service.
ADVICE 2: To the Beneficiaries of Fuel Subsidy, invest whatever is left of the goodies now, or what will be paid later as outstanding by the current administration, in Term Assurance Policies of multiple years (10, 15, 20) for you and your members (family and friends) and be assured of a future without fear. Term Assurance is a form of Individual Life Assurance coverage.
ADVICE 3: To the Beneficiaries of Fuel Subsidy Removal, as you begin this new phase of life, consider it as the opportunity you have needed to put your financial life in order. Get an Individual Life Assurance, Personal Accident Insurance, Health Insurance and Mobile Insurance as well as Identity Insurance as required in this digital age. Insurance is now more accessible via your mobile phone, available via online platforms and affordable via usage-based solutions.
And to all true Nigerians, don’t wallow in the reported disappointments and ignorance of past insurance experiences rather embrace the new exciting environment created by innovative and predictive insurtech companies and partnerships. You are enabled to engage your future and secure it using diverse options.
#BeAware #BeInformed
