Insurance Penetration in Nigeria Among the Worst in Africa, Says SBG
The Managing Director, SBG Insurance Brokers Limited, Lagos, Mr. Sammy Dalmeida, has lamented that insurance penetration in Nigeria is among the worst in Africa, calling on insurers to stir Nigerians’ interest in embracing the sector.
Dalmeida also urged insurance brokers to explore “blue-ocean strategies” and digital technology to enhance their continued relevance and strategic positioning in the nation’s insurance market.
Dameilda said this during a press briefing to announce the 20th anniversary celebrations of the firm.
He said, “The growth of the market for insurance in Nigeria has been relatively limited. Our insurance penetration ratio of 0.5% (computed as GPI as a percentage of GDP) ranks amongst the lowest in Africa. However, the low insurance penetration rate shows that there are abounding opportunities for the growth of the market.
“But to achieve a positive transformation of Nigeria’s insurance market, operators would need to stimulate the appetite of Nigerians for insurance with the introduction of innovative products and digital disruption of traditional processes and practices.”
He noted that brokers would continue to dominate the premium generation channels of the nation’s insurance market because of the expertise they brought to the development of the sector.
Dalmeida, however, urged them to embrace what he called ocean-blue strategies to up their game.
“The ability of Brokers to explore blue-ocean strategies and introduce digital disruption to their business models will play a major role in determining their continued relevance and strategic positioning in the market,” he said.
Speaking on the activities lined up for the anniversary, Dalmeida said SBG would on December 1 endowed an academic prize for the best graduating student in insurance at the University of Lagos.
“The Annual Prize for the Best Graduating Student in Insurance is aimed at spurring insurance students to attain academic excellence. The N2.5m 10-year tenured endowment will result in the best graduating insurance student receiving N250, 000 each year for the next ten years. It is the company’s expectation that, by this CSR Project, it would be contributing to strengthening the quality of skilled insurance personnel in the industry,” he added.