UPDATED: Insurance Brokers Urged to Embrace Digitalisation, Partner InsurTechs to Drive Growth
L-R: Olugbenga Falade, Assistant Executive Secretary, Nigerian Council of Registered Insurance Brokers (NCRIB); Ekeoma Ezeibe, council member, NCRIB; Rotimi Olukorede, Chairman, NCRIB Lagos Area Committee; Bolanle Komolafe, guest speaker, /trust services, UTL Trust Management Services Ltd; and Ayo Akande, past chairman, NCRIB LAC during the 2021 Mid-Year Workshop organized by the NCRIB Lagos Area Committee in Lagos
Insurers and brokers who wish to stay ahead of their competitors have been urged to embrace digitalization and partner Insurtech even as the traditional approach of selling insurance products to the customers may no longer be enough in future.
Insurers and Brokers have also been told that they will also witness a technology-driven shift in the way insurance is sold especially in personal line Insurance.
These observations were given by the Managing Director, Risk Analyst Insurance Brokers Limited, Funmi Babington-Ashaye, yesterday while speaking on “Emerging Markets And Opportunities In The Insurance Industry” at the 2021 Mid-Year Workshop organized by the Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB).
While giving insight on the benefits of digital marketing, Ashaye said digital marketing of insurance will accelerate in the years ahead with growth in the internet and online-based digital technologies, noting that growth in Multilevel Marketing Strategies will be aided by Insurtech.
She called on Insurers and Brokers to focus more on selling insurance products through a telemedical process which is the need of the hour pointing out that this will be complemented by the e-verification process of the customers to buy a health and term insurance plan.
Facilitators and organisers in a group photograph at the Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB) 20221 Mid-Year held on Thursday, July 1, 2021, at NECA House, Alausa, Lagos
According to her, buying insurance through digital channels will ease the buying process and give customers numerous options to select the right insurance product as per their choice and requirement.
“Since the outbreak of the COVID-19 pandemic, awareness about the need for protection has increased by many folds. Demand for insurance products for risks usually not covered by insurance companies has started gaining traction. These covers range from protection against pandemics and new risks associated with technology.
“Though they would prefer to pay a decently priced premium for these policies when these products are made available digitally, it will rightly cater to the digitally-savvy generation of people and directed the Brokers to partner with Insurance Companies in the development of these products.
While emphasizing the need for partnership with InsurTech, she said InsurTech firms have been showing significant growth in the areas of auto, homeownership and cyber insurance, noting that such strong growth will stimulate traditional insurers to either acquire technology capabilities or partner with InsurTech companies.
Ashaye said with an increasing demand for innovative products and services from millennials, such collaboration will become a critical imperative even with Brokers still being part of the value chain.
“Overall, it will be a win-win situation — traditional insurers will benefit from faster results in establishing a tech culture and InsurTech companies will have access to larger customer bases, funding and domain expertise.
“It will give rise to newer models and revenue streams for higher profitability and reduced operational costs. Customer experiences will be enhanced with value-added offerings,” she stated.
The President Nigerian Council of Registered Insurance Brokers Dr (Mrs) Bola Onigbogi while addressing the gathering virtually called on Underwriters and Brokers to use the disruptions occasioned by the pandemic to break new grounds and grow their business. “This is the period where the operators need to break the frontiers of new markets post-COVID-19 in order to flourish.”
Onigbogi who described Brokers as strategic stakeholders in the insurance value chain, posited that Lagos Area Committee as a foremost Area Committee has readily complemented the present leadership team of the Council under her Presidency.
Earlier in his remark, the Chairman, Lagos Area Committee, Rotimi Olukorede, enjoined the underwriters and brokers to take advantage of opportunities in and around them to grow their bottom-lines instead of being consumed by the zeal to market potential customers to the detriment of these opportunities.
According to him, “If we don’t know or appreciate the opportunities available in our own industry, we will not be able to harness them fully.”
He called on underwriters and brokers to take advantage of opportunities abound in the area of product development, technology, and market share and customer service amongst others.
