The head, Retail Business, Leadway Assurance Company Limited, Mr. Tunji Amokade, said the future of insurance industry lies in the retail market, noting that, the commercial market was saturated.
Amokade, while speaking on ‘Micro Insurance Business in Nigeria’ at a media training organised by Leadway Assurance for insurance correspondents, in Lagos State recently, added that despite the huge population the country is blessed with, low insurance penetration was still a major issue.
“The problem of penetration is because we are cash-based economy unlike other countries that are credit-based,” he said.
The success story of insurance in South Africa, Kenya, Morroco, and so on, he said, was as a result of their credit-based economy, stating that until Nigeria borrow a leaf from these countries, low penetration would continue.
While calling for institutional structure that allows credit to thrive, through this, he said, insurance can be incorporated into some credit-based services, thereby, increasing its adoption and contribution to the nation’s economy.
Charging insurance companies to offer good value for money for their clients, he urged underwriters to increase their visibility through effective use of technology as well as building more offices where there are none.
“The industry has been targeting the upper class, but the market now resides in the middle and the lower classes,” he pointed out.