Nigeria’s insurance industry has a problem recapitalisation won’t fix —C.H.I CEO

Nigeria's insurance industry faces a significant hurdle that recapitalisation efforts cannot address: trust. In an interview with Nairametrics, Mary Adeyanju, CEO of Consolidated Hallmark Insurance (C.H.I), highlights the challenges the industry is facing and the steps they are taking to overcome them.

Despite having raised a combined N700 billion through the recent recapitalisation exercise, the industry remains plagued by a lack of trust among Nigerians. Many people view insurance as unnecessary, and those who have purchased policies have often had negative experiences. This negative perception has led to a reluctance to buy insurance, particularly among individuals and small and medium-sized enterprises (SMEs) who stand to benefit the most from such coverage.

Adeyanju emphasises that insurance is a product that people do not appreciate until they need it. It is something that people buy, not feel, and its value is only realised when a claim is made. This is why the company is focused on educating Nigerians about the importance of insurance and changing the narrative surrounding it. They are also exploring new product offerings and distribution channels, such as partnerships with banks and super agents, to reach a wider audience.

The CEO acknowledges that trust issues, capacity, and technology are the three main challenges facing the insurance industry in Nigeria. While recapitalisation has helped address capacity concerns, the industry still needs to improve its technological capabilities to reach more customers effectively. Moreover, the industry struggles to attract top talent due to lower salaries compared to other sectors in the financial services ecosystem.

In summary, the recapitalisation exercise has provided a financial boost to the Nigerian insurance industry, but trust remains the biggest obstacle to growth. Adeyanju and C.H.I are actively working to change the perception of insurance and improve the overall customer experience. However, addressing these challenges will require a concerted effort from all stakeholders in the industry.