FOR BUSINESS DEVELOPMENT
OKPOR: CLAIMS PAYMENTS ARE NO LONGER A PROBLEM IN INSURANCE CONTRACTS
How many Investment related life products have you pushed to the market?
We have over 20 products.This is an old company not new one.The company was originally started by Germans they used to own 40 percent of the company while Nigerians own 60 percent but because of value of Naira that has gone down over the years, the Germans are no longer coming to work with the company
When we were employed newly, the Germans used to come ,work with us for say three months and go back but now they are only interested in technical cooperation with us if we need to develop new products,they will come and give us advice that is what they are doing with us.Nigerians have taken over directorship of the company and we are now fully owned Nigerian company.They have not sold their stake they are still available they are even still hoping to come back now that other foreign investors are coming back to the country. But they have not come. If they have to come, they have to buy shares, Nigerians are the directors so we are fully Nigerian company.
What is ownership stricture of the company like ?
We have over 800 share holders but our chairman Engr Cyril Ajagu has the highest share .He is the chairman of the board but if he retires and goes, another person will take over.
Micro insurance: under the micro insurance, it is only this Esusu that falls under the micro insurance under life all other products we have are not micro insurance.So we are expanding it gradually. Market women and local people are used to Esusu so to make it more attractive, we attached life insurance to it so if you are contributing to our own every year,you still collect what you contributed with interest and if there is death, you still collect another sum as claims so that is the difference between our own esusu and ordinary ones they contribute to. You have what you contributed with interest, so when they saw it and the benefit attached to it,they rush to it. So the traders , market women embraced it because unlike other Esusu where the coordinator can run away with the money,our own is not like that because the insurance company is there always and our marketers are there, they go from market to market collecting their contributions and the traders like it.
Your marketing strategy is good but the problem I can see is availability of your products because of limited number of branch network, what plans have you to make your products especially this Esusu life insurance available to market men and women in different parts of the country?
We have 17 offices apart from the head office we have over 500 marketers.In Lagos here we have offices in ASPANDA, Alaba, Aladimma market Ikeja and other big markets here.At Onitsha, we have offices and marketers. We have in Jos, Kaduna and other arts of north.
What position does African Alliance occupy in Nigeran insurance market?
The Nigerian Insurers Association (NIA) rates companies .In life business, they rate us as number four it is usually based on premium income.last year our premium income was N12 billion.Am sure when they release the next rating we will move up.That is in life. You compare companies that do similar businesses.In life, you compare African Alliance with Aiico, Leadway,these are the leaders in life business.
How do you think insurance market generally can be opened more to Nigerians?
That is where the cooperation comes in. All the organs of the industry that is Nigeria insurers Association, National Insurance Commission, the Nigerian Cooperation of Registered Insurance Brokers and others have to come together ,advertise, educate people that is the only way they can make it.You know Nigerians when they want to buy insurance they don’t say I want to buy African Alliance , they just say insurance so if you are advertising and you do not come together, you are advertising for others,the strategy in marketing is that when you are advertising, you have to follow it up with foot soldiers otherwise if you don’t have people that can go face to face , no matter how attractive insurance is people cannot walk in and say they want to buy insurance., you have to go to them. You have to get people on ground. The initial doubt that Insurance does not pay claims has been wiped out because claims are paid now.So things are changing for better and Nigerians are becoming more educated. More and more Nigerians are embracing Insurance even cattle traders from the north are all doing insurance.
I have not seen this cooperation among you when it comes to advertising the industry, are you really Cooperating in this regard?
We are doing something along that line. NAICOM is a leader in all these things.We pay levy to NAICOM every year once your account is approved you pay a levy to them so they are using the money to advertise. At times two or three insurance companies come together to advertise.When the annuity insurance out bewly,we came together, six of us pulled resources together and were advertising it. Because when Lagos state started pension especially annuity they approved only four companies African Alliance, Leadway, Aiico and Crystal life but now they have added their own company which is LASACO Assurance. Today through our cooperate advertisements, the annuity business is opening up. You know some of the pensioners, when they retire, they have two options either you go to PFA or you go for annuity but insurance is better so people are withdrawing their money to buy annuity. If you have RSA with a PFA, at retirement, when you are 60 either you leave the money with PFA to be paying you monthly for 18 years or you buy annuity from Insurance company which, guarantees you payment for life so people prefer annuity.
Can you please set an Agenda for the in coming government?
Insurance industry in Nigeria is already well regulated .The only thing they should do is to look into the investment aspect of the business and try to widen areas for investment because one of the things that grow insurance is investment. They should try to strengthen capital market because I remember that in 2008 when the share values reduced in Nigeria, many companies including our company suffered a lot of loss so they should make policies that will strengthen investment market so that businesses will continue to survive and those already dead will be resucitated.