Amidst hardship and the slow recovery of the economy, individuals and households are resorting to taking life insurance for the protection of future income and their defendants.
Some of the consumers say they have decided to embrace insurance for long-term savings and capital accumulation, which could be used for future purposes, protection for children’s education and upkeep in the event of the breadwinner’s death.
These developments have resulted in increasing demand for personal-line insurance in the Nigerian market as shown by recent data released by the National Insurance Commission (NAICOM).
According to the NAICOM, life business contributed 41.8 percent of the total insurance market production of N369.2 billion in the second quarter of this year, gradually closing up on the general business, which contributed 59.3 percent.
Of this amount, individual life business was the major driver at 41.8 percent of the life premium generated, annuity business at 24.7 percent, and group life business contributed 34 percent.
Chinemere Obilor, an insured who took a 15-year life insurance policy of N10 million sum assured, said: “I have decided to insure myself and my family, so that we can have something to fall back on, whether I am there for them or not.”
“Many Nigerians are not seeing hope in an economic revival, so people are thinking of what can keep them afloat whatever the situation is.”
On why he sees insurance as the best financial instrument for this purpose, he said: “The problem is that a lot of us don’t understand insurance and its benefits.”
Bankole Banjo, a brand, media and communication manager at a life insurance company in Nigeria, said the trend in demand for life insurance products was connected to the overall increase in the quest of the average Nigerian, particularly the middle class, to secure their tomorrow.
He said: “You see a lot of people on the so-called ‘japa’ train, and the underlying factor driving that for most is people wanting to do it for themselves, waiting to secure their tomorrow.
Managing Director/CEO of African Alliance Insurance Plc, Joyce Ojemudia, said paying genuine claims “is a trust we do not intend to break”.
