Why Insurance Industry Will De-emphasize Recapitalization – Expert

Mr. Ekerete Ola Gam-Ikon, Founder/CEO, Finterate Projects Nigeria

The insurance industry in the next five years will de-emphasize recapitalization and dwell on how Insurtech start-ups will help reach more Nigerians leveraging Microinsurance and Takaful, the Founder/CEO Finterate Projects Nigeria, Ekerete Ola Gam-Ikon, has said.

He also expressed the hope that Insurtech start-ups will be encouraged as it is seen in other climes to cause the real shift towards the transformation of Nigeria’s insurance sector.

Ekerete, in an interview with our correspondent, emphasized the need to strengthen the Nigerian insurance industry’s regulatory system to boost the image of the industry in order to engender public confidence.

He also called on the industry especially the underwriters to do more in attracting more people to take insurance policies.

According to him, “I believe the Nigerian market is ready for these types of insurance which will be propelled more by technology and while the regulator seems to be ready with some of the actions they have taken recently, they have to ensure their words match what has been written in their guidelines and regulations.

“The regulatory system in insurance is perceived as weak because many companies and professionals have got away with unlawful acts and are still holding their licences. This is the real problem that makes some members of the public say the regulator protects these bad actors.

“If we are truly interested in developing the insurance industry and increasing its contribution to Nigeria’s GDP as well as bettering our position in Africa, let us focus on winning more from our population to become policyholders.

“The regulatory system should enable the public to believe they will rise to their defence as required by the law, insurance operators should believe they exist for policyholders and investors and policyholders should believe that their needs can be met by insurers. Today, we have more of “we cannot cover such risks” from insurers and this is still from their desk assessments without engaging to understand the proposers.

“If we can have platforms where Nigerians post their insurance questions monitored by the leadership of the insurance industry, maybe we will appreciate the difference. Answering questions from existing and potential customers have always improved businesses and sectors.”