Brokers charge underwriting firms to launch more innovative products

Insurance brokers, under the auspices of Nigerian Council of Registered Insurance Brokers (NCRIB), have charged insurance companies in the country to be innovative in products design and delivery.

Speaking on behalf of the brokers, President, NCRIB, Mr. Kayode Okunoren, said, this entails that products are going to be tailored according to the specific insurance needs of the people.

While addressing insurance operators and brokers at Brokers’ Evening in Yaba, Lagos, he said: “I challenge you (underwriters) all at a time like this to be more innovative, in terms of product development and invent multiple streams of business ideas to weather the storm. It is not time to fold our arms and watch the pendulum swinging against us.”

Stating that the sharp drop in the price of oil globally has put Nigeria in a precarious situation adding that the mono product economy the country is practicing further add insult to injury.

With a dollar being exchanged for N420, he said nobody is immune from the current economic meltdown, stating that insurance industry is one of the worst hit sectors.

Nigeria, he said, runs a cash and carry economy, where insurance is often placed at the lowest ebb of scale of preference, if included at all.

Many policy holders, according to him, have jettisoned the need to renew their policies.

“There are no new businesses, and to worsen the situation, Government agencies and parastatals, which happens to be the highest insurance consumers, have no wherewithal to pay premiums as at when due. The implication is that, there are no covers for most government agencies and parastatals since the ‘No Premium No Cover’ policy must be effected”, he pointed out.

However, he implored operators to hold the faith by believing in the change policy of the incumbent government.