NCRIB 60th Anniversary Colloquium:  Tony Elumelu Harps on Importance of Insurance

L-R: Chairman, United Bank for Africa, Tony Elumelu and Commissioner for Insurance/CEO, National Insurance Commission (NAICOM), Olorundare  Sunday Thomas at the event. (Photo: Inspenonline)

The Chairman, Heirs Holdings and Founder, Tony Elumelu Foundation has identified the importance and pivotal role insurance plays in any society, saying insurance provides the much-needed safety and security as well as enhances the growth and development of the economy.

Elumelu said this in his Keynote Remarks at the Nigerian Council of Registered Insurance Brokers (NCRIB) 60th Anniversary Colloquium with the theme,”60 Years of Insurance Broking: Redefining the Practice and the Practitioners,” held in Lagos yesterday.

According to him, we all understand the pivotal role Insurance plays in any society. It provides the much-needed safety and security.

He noted that through insurance, large volumes of funds are mobilised by way of premiums for investments, spurring the growth and development of the economy.

“With insurance, families receive financial security, assets are protected against hazards, and businesses continue to run with the assurance of financial compensation in the event of a loss.

“In a nutshell, insurance keeps families and their possessions intact, provides financial safeguards for businesses, creates employment, and generally advances the economy.

“An economy is therefore as advanced as its insurance sector. More importantly, in an economy going through inflation and a widening poverty gap, insurance is more important now than ever. That is why we decided to introduce smart, simple insurance to the Nigerian market to better service this underserved market,” Elumelu said.

On the need for the industry to collaborate with others for the growth of the industry, he said, “The NCRIB and other insurance industry bodies should collaborate more to deepen insurance penetration in Nigeria.

“Where there are differences on issues, such must be resolved as friends and colleagues to protect and preserve the image of the industry.

“The body should also play a key role in government advocacy for pro-insurance laws and policies.”

Speaking on innovation, Elumelu said, “The insurance industry can benefit from innovation across all phases of the service. For this to happen, there is the need to reward and incentivise innovation across the industry.

“The industry must also benchmark against global trends.

“Perhaps the starting point for innovation in the broking arm of the industry is retail insurance development.”

He noted that over the years, brokers in the market have been recognised as corporate insurance specialists, stating that “It is high time the brokers community began to shift focus to retail because this is where the future of insurance lies in Nigeria. Brokers have the capacity to lead in this area.

He pointed out that “innovation and disruptive practices cannot occur if we do not broaden our thinking,” adding that “trying to make profits from existing lines is not going to deepen insurance penetration, rather we must look at the blue ocean opportunities”

The Chairman of Heirs Holdings tasked the management of the insurance companies to constantly think of product development and deployment.

On awareness creation, he said “there is a need to generate more awareness and showcase the value of insurance to the public, promoting participation, most especially in the retail space.

“We must bridge the insurance knowledge gap if we are to make insurance attractive to Nigerians

“Insurance brokers need to participate fully in this drive as they stand to benefit from the initiative like other players in the market.”

In the area of Technology, Elumelu said, “to remain relevant in the modern business arena, the insurance broker community and, by extension, the entire Nigerian insurance industry, must embrace technology fully.

“The body also needs to work towards positioning its members properly for digital integration, mediating between the insuring public and the underwriters digitally.”