Insurance stakeholders advocate innovative products to drive SDGs attainment in Nigeria
STAKEHOLD ERS IN THE IN SURANCE IN DUSTRY have pushed for the adoption of innovative insurance products that can support sustainable development in Nigeria. This was an aspect of the key discussions at the fourth edition of the “Insurance September 2020” event, which was held virtually to examine the topic “Insurance and Sustainability” and monitored by Business A.M. The 2020 edition of the annual event brought together key stakeholders, policymakers, regulators, experts and analysts in the insurance industry in Nigeria to a roundtable opportunity to explore how the country can achieve the Sustainable Development Goals (SDGs) by the year 2030. Ekerete Ola Gam-Ikon, Business A.M. columnist and convener of the event, welcoming participants said insurance sustainability was critical for the next generation of customers, and it was important to communicate with what they can understand, and highlighted that all Nigerians need to encounter better insurance coverage. Ekeome Ezeibe, managing director and chief executive of Crystal Trust Insurance Brokers Nigeria Limited, who delivered the keynote at the event, said the subject matter captured the atmosphere for adopting insurance as the potential instrument for driving sustainability in a PostCOVID-19 period. She said the effect of COVID-19 on the worldwide economy, including the insurance business, is no longer news, further stressing that it was a twin stun for Nigeria because of a health pandemic being intensified by falling global oil prices. “It will affect some businesses that will help to sustain the economy, even as we are still challenged with the absence of physical faceto-face interactions between client and stakeholders, cancellation of events, business interruptions, job losses, a decline in revenue for some businesses, an increase in the prices of goods and services and closure or restricted opening of schools,” Ezeibe said. According to her, the insurance industry has started discussing innovation and is exploring ways to hasten the way the industry advertises its services leveraging digital platforms to achieve convenience and efficiency. Speaking to the subject of insurance as a tool for sustainability, Ezeibe said it was a significant industry that was imperative to global economic stability, stressing that the world economy has had less ability to ingest stuns in 2020 than it did in 2007 and would require more risk assurance for residents. She, therefore, called for the issuance of new products while presenting a strong case for collaboration between stakeholders and brokers in the industry to accomplish sustainability for the economy. The risk protection expert concluded that as a tool for sustainable development, insurance makes the world versatile and can help Nigerian farmers by protecting them from the impact of climate change and help stabilize their businesses, with the belief that the amendment of the Insurance Act was key to making a stronger sector. Also speaking at the webinar monitored by Business A.M., Segun Adaju, founder and chief executive officer, Consistent Energy Limited, who is also president, Renewable Energy Association of Nigeria (REAN), discussed the effect of the pandemic on energy consumption in Nigeria. From the insights shared about Nigeria’s energy situation room, he revealed that the world’s most populous black country of over 200 million people, has 45 per cent access to energy with her current electricity demand at 40,000MW, current grid supply 4,000MW averaged, installed capacity 13,000MW, and transmission capacity 7,000MW, amongst others. As indicated by Adaju, “The renewable energy we have in the country is enormous. In the last month, the energy consumption during the lockdown was much owing to COVID-19 impact on solar energy, and it has helped businesses work remotely and cheaper. These firms stay online and buy energy than navigate to and from work, which has revolutionized the remote work experience. The energy will be needed more for health, residential, public facilities, worship centres.” On the area of energy market developments, Segun Adaju said renewable energy, especially off-grid solar, has been classified fundamental services, and has been given an exemption to operate in Lagos. The renewable energy expert also discussed the role of insurance in solar energy for all, noting that insurance is essential for a viable economy. Without it, businesses and individuals would not be able to face challenges and protect their assets, though, bankers have adopted it. Shalom Asuquo-Ankoh, Travellab Nigeria Limited’s chief executive officer commented that the rapid growth in technological innovations has affected the insurance industry and that with the rate of volatility, insurance companies have strived to meet consumers with services demand. “There are bigger opportunities in the domestic travel space,” the travel expert revealed. “The travel sector has clinched sales in high volumes to the tune of N565 billion as at 2018 and so, we need to look at things like AI, drones, BI, VR, etc. which is generation Z, while, also taking a gander at how the travel industry and insurance companies can catch up to all these,” Asuquo-Ankoh said. Asuquo-Ankoh, who called for more collaborations between the insurance industry and other sectors, also added that there is a need to ensure that insurance is affordable to market women; create new products and embrace technology. Chizor Malize, managing director and chief executive officer of Financial Institution Training Centre (FITC), Nigeria, said the realities and challenges of tech and digitisation have affected insurance companies today in a different angle from what happened in the past. Malize revealed that technology has involved so much and wide which is why innovation is still a key investment, stressing that the insurance industry should find inventive approaches to bring more people to the insurance sector and thereby achieving more than 25 per cent penetration through educating the market for higher revenues and profitability. “The industry must become more innovative in delivering and ensuring that there is product innovation, growth is also critical to the insurance sector. Insurance brokers need to make use of available tools for training and manpower development, capacity building to help handle the contemporary needs of clients and prospective ones.” Meanwhile, at the virtual event which had Prince Lekan Fadina, Tola Adegbaye, Bimbo Kumaya, Shola Tinubu and other stakeholders in attendance, they called for more collaboration outside of an industry which is worth over $400 billion, stating that it is important to collaborate with industry regulators to protect consumers and safeguard the nation’s economy.