Experts Charge Insurers, Brokers On Tech Adoption In Business Processes

Experts have charged insurance companies as well as brokers to adopt Information Technology(IT) in their business processes to make a huge impact in the economy.

The experts, who spoke at the Nigerian Council of Registered Insurance Brokers(NCRIB)’s 60th Anniversary Grand Ball & Night Of Honour in Ikeja, Lagos on Wednesday, noted that, through technology, the abysmal insurance penetration level will definitely improve.

The chairman, Zenith General Insurance Company Limited, Dr. Jim Ovia, stated that, technology ensures that insurance industry information sharing is seamless, and incorporated into the underwriting process, while it has the tendency of reducing fraud risk (claims settlement) and cost of operations.

Believing adoption of technology improves consumers’ trust and confidence in insurance companies, he added that, technology is equally crucial in insurance products development as well as the brokerage fraternity.

Speaking on the role of brokers in the insurance industry value-chain, he said, there are over 500 registered insurance brokers who collectively control the market, with around 52% contribution to gross premium income (GPI).

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Nigerian Insurance brokers, he said, also tend to earn higher commission than is attainable in other African countries, even as the broker market in Europe accounts for 20% to 45 per cent of gross premiums.

Because of the monopoly of brokers in the insurance industry, he said, many brokers capitalise on this monopolistic power which has led to inadequacy of rates and premiums for demanded cover, inappropriate policy terms and conditions as well as failure to or delays in providing documentation and information and coercion to make ex-gratia payments.

All these, he said, must be addressed going forward, saying, adoption of technology can address some of these unhealthy practices, thereby, making insurance brokerage and underwriting seamless and efficient.

On his part, the president, NCRIB, Barrister Rotimi Edu, pointed out that, technology plays a pivotal role in different aspects of modern day society and in life as well, starting from the basic routine tasks to the cumbersome responsibilities, even as it also plays a crucial business processes.