The Managing Director of Pinet Informatics, Engr. Lanre Ajayi, has said Nigerians must be persuaded to buy insurance products and services and not by compulsion as it is being done in the insurance industry, through the enforcement of compulsory insurances.
Speaking in Lagos last week, Ajayi said people must see value proposition to buy insurance products, noting that since people are not enlightened on the values they can derive from insurance products, they will not buy, unless under compulsion, which he said, is not good.
Insurance companies must increase awareness and enlightenment on insurance, if the insurance penetration must improve, he said.
According to Ajayi, the insurance industry is a vital part of the Nigerian economy but the industry is not living up to its full potential, saying, “there are less than 1.5 million insurance policy holders in Nigeria out of a population of 170 million, which translates to 0.9 per cent insurance penetration.”
He said when compared to 23 per cent bank account holders, 105 per cent of telephone penetration (more telephone subscriptions than people) and 55 per cent of internet penetration, then there is a lot of room for improvement in insurance industry.
He assured that the situation in the insurance industry can be turned around if the industry transit to a technology driven one, the same way the banking industry got transformed through the infusion of Information and Communication technology in its service delivery processes.