Yemisi Izuora
The Chairman of NEM Insurance Plc, Mr. Tope Smart, has emphasized the critical role of enforcement and consumer confidence in driving adoption of insurance products within the Nigerian market.
Smart, who spoke during an event in Lagos further highlighted several factors challenging the insurance industry as he expressed concern over the low level of insurance penetration in Nigeria compared to global standards,
He pointed out that the lack of or inadequate enforcement of compulsory insurance policies was a significant barrier to increasing insurance penetration. Despite efforts by the industry to collaborate with regulatory and enforcement agencies, such as the National Insurance Commission (NAICOM), challenges persist in ensuring widespread compliance with mandatory insurance requirements.
“With a population of over 200 million, it is disheartening that only about 3 million individuals are currently insured,” remarked Mr. Smart. He underscored the urgent need for enhanced enforcement mechanisms to encourage greater adoption of insurance among the Nigerian populace.
Addressing consumer apathy stemming from past negative experiences, Mr. Smart reassured Nigerians that the industry is committed to addressing grievances and improving service delivery. He emphasized the availability of complaint channels, urging policyholders to utilize platforms such as the Nigerian Insurers Association (NIA) and NAICOM to seek resolution for legitimate claims disputes.
“Consumers’ reluctance to renew policies due to past grievances is understandable, but we are actively working to rebuild trust and enhance the overall customer experience,” stated Mr. Smart. He emphasized the industry’s dedication to addressing consumer concerns and fostering transparency and accountability.
Smart reiterated NEM Insurance Plc’s commitment to partnering with regulatory bodies and stakeholders to overcome barriers to insurance penetration in Nigeria. By prioritizing enforcement, consumer confidence, and service excellence, he expressed optimism about the industry’s ability to expand its reach and provide valuable protection to a greater number of Nigerians.