Allianz Nigeria Insurance Plc, a new underwriting insurance company in Nigeria has said that Insurance in Africa, especially Nigeria, will grow stronger in the next decades due to the demographic transition, combined with a growing insurance penetration.
Mr Ceonraad Vrolijk, the Regional Chief Executive of Allianz Africa, said this while speaking at the unveiling of the company in Lagos.
He said Allianz Nigeria Insurance Plc is a composite Insurance company licensed to transact Life and Non-Life Insurance business in Nigeria, and their products ranges from retail products such as Motor, Life, Home Insurance and corporate products.
Vrolijk said: “We believe insurance in Africa, especially, Nigeria, will grow stronger in the next decades.
“This is due to the demographic transition, combined with a growing insurance penetration, which is still below two per cent.”
Vrilijk said that the group had penetrated Nigerian market to optimise insurance service for all citizens in personal or commercial lines.
He said that in nearly two decades, Africa had witnessed significant population growth, rapid transformation in financial sector, digital disruption, telecommunication and accessibility to internet.
Vrolijk said the Allianz group with its headquarters in Munich, Germany, had offered micro insurance solution to 500,000 low income households on the continent.
He said that the group had also floated a contemporary risk for business in the area of cyber security.
Speaking about the future; he said that Allianz would like to look more closely into the Cyber Liability Insurance Coverage (CLIC) in Nigeria.
“As one of the largest investors, we manage over €650 billion (Euros), on behalf of insurance customers and additional €14 trillion in third party assets in more than 70 countries with 150,000 employees.
“The group recorded a total revenue of €126 billion (Euros) in 2017 and an operating profit of €11 billion for the group.
“The success story highlighted our commitment to investment, as our presence is now imbedded over 70 countries,” he said.
In his remarks, Mr Olasunkanmi Adekeye, the Managing Director, Allianz, Nigeria, said that the company officially transformed from “Ensure Insurance Plc to Allianz Nigeria Insurance Plc in December 2018.
Speaking further, Adeyeye noted that in the nearly two decades of this century, Nigeria has witnessed significant population growth and a rapid transformation in the areas of financial services provision, digital disruption, telecommunication, and accessibility to the internet, adding that as Africa’s most populous nation, Nigeria represents the power-house of human capital on the continent and is one of the most dynamic economies in Africa.
“By launching in Nigeria, Allianz gains full access to this key insurance market in Africa, and this marks a major milestone for Allianz long-term growth strategy on the continent. This new step of development, will allow us to contribute to offering the best products and services to Nigerian customers in both personal and commercial lines. We are optimistic about the limitless potential of this future growth market.” Adekeye said.
He said Allianz currently offers micro-insurance solutions to 500,000 low-income households on the continent. “This is a business opportunity we look forward to exploiting in full,” he assured.
In a bid to tackle contemporary risk for businesses in the area of cyber security, he said “we will like to look more closely into cyber liability insurance (CLIC) coverage in this fast growing market.”
He said as a Composite insurer, they are licensed to transact both life and Personal and Commercial (P/C) insurances.
“Actually, we are licensed in Nigeria to transact both Life and P&C as a composite insurance company. However, the fact is that P/C insurance remains the single largest source of profit. It is also the segment where we currently see the largest upside. Therefore, operating profit from P/C should grow disproportionately at around five per cent per year – based on an ambitious target for the combined ratio of 95% driven in particular by productive improvements that lower the expense ratio. Efficient use of shareholders’ equity as part of our capital management demands that we make significant investments to grow this profitable line of business, the MD said.
Allianz Nigeria is reputed for strong management team from diverse backgrounds with an average of 10 years’ experience in financial services sector; made up of young and dynamic workforce with highly experienced board of directors.
According to him, Claims’ payment will be automated; purchase of insurance products will become 100 per cent digital, among others.
“Allianz will bring micro insurance to the homes of many Nigerians,” he assured
In Africa, Allianz is currently in 17 countries and accompanies clients in 39 countries