The Chief Executive Officer, LASACO Assurance, Segun Balogun, says it’s a must for Fintech to be adopted in the operations of the insurance sector in order to further enhance penetration in the country.
Balogun who disclosed this recently said the technology has worked for many other industries, and therefore, the insurance sector should not hesitate to embrace it because the sector has enormous growth potential, considering the country’s favourable demographics.
“It would help increase the rate of insurance penetration as choosing an instrument such as Fintech would place the operations of insurance in the hands of consumers placing the purchasing of insurance and processing of claims to be at the palm and the comfort of consumers.
Also reacting to the low penetration of insurance in the country, Balogun said industry players need to break insurance down to the language that can be spoken and understood by the common man on the street who presently feels insurance is not meant for him/her.
“With a population of around 180 million people and the potential upward mobility of substantial segments of the country’s populace, a boost in the insurance penetration will increase the insurance industry’s contribution to Nigeria’s GDP.
He said operators need to speak to these needs and create bespoke products that can attend to these needs and take it down to them in the grassroots.
Speaking on the growth of the industry in Nigeria, Balogun said the sector is not far back in terms of skills and competence as the industry has competent insurance professionals and business managers.
“One of the advantages the recapitalization would bring is enhancing capacity such that some of our insurance companies would be looking to take comparative advantage to establish a presence in other economies in Africa.
