Nigerian insurers have indicated that the insurance industry
is under-served with only about 20,000 agents covering the country.....
They noted
that the number of agents in Nigerian insurance industry is low compared to
what obtains in other countries, adding that this shortfall is one of the
factors undermining insurance penetration and growth in the country. insurance
Speaking to Vanguard Insurance, Executive Director of Ensure Insurance Plc, Mr.
Owolabi Salami, said, “We have about 20,000 agents servicing a buying
population of 37 million insurance consumers in Nigeria whereas India has about
1.9 million agents while South Africa has about 400,000 agents. I can tell you
for a fact that some individual companies do not have up to 200 agents. This is
so because the funds that are meant to be invested in doing all of these things
are not being applied to that.” Speaking in the same vein, Chairman of Nigerian
Insurers Association, NIA, Mr. Eddie Efekoha said that in Hong Kong, there are
over 25,000 agents servicing a total population of just 17 million people which
has led to insurance contributing over 90 percent to the Gross Domestic
Product, GDP, of Hong Kong. Efekoha said, “In Hong Kong, insurance contributes
substantially to the GDP of the country. Over there they have over 25,000
insurance agents which greatly enhanced insurance penetration in that country.
These are things that we should begin to implement in Nigeria.” On why the
Nigerian market has limited agents, Salami said, “For too long in the industry,
everybody focused on corporate business. It was cheaper to run corporate
insurance and just be getting business from the public sector. But now, we see
that we need to go way beyond that, so several of us are making the required
investment in distribution of insurance. “We need to deliver value and good
service to customers because they can also become our ambassador in getting
other people to come and buy insurance because things are changing. The
insurance industry of today, regarding claims is not the insurance industry of
five years ago.”
20,000 Agents Inadequate For Insurance Services In Nigeria
Reviewed by FOW 24 News
on
June 11, 2018
Rating: 5
Nigerian insurers have indicated that the insurance industry is under-served with only about 20,000 agents covering the country.....
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