20,000 agents inadequate for insurance services in Nigeria.

NIGERIAN insurers have indicated that the insurance industry is under-served with only about 20,000 agents covering the country. They noted that the number of agents in the Nigerian insurance industry is low compared to what is obtainable in other countries, adding that this shortfall is one of the factors undermining insurance penetration and growth in the country. insurance Speaking to Vanguard Insurance, Executive Director of Ensure Insurance Plc, Mr. Owolabi Salami, said,
“We have about 20,000 agents servicing a buying population of 37 million insurance consumers in Nigeria whereas India has about 1.9 million agents while South Africa has about 400,000 agents. I can tell you for a fact that some individual companies do not have up to 200 agents. This is because the funds that are meant to be invested in doing all of these things are not being applied to that.” Speaking in the same vein, Chairman of Nigerian Insurers Association, NIA, Mr. Eddie Efekoha said that in Hong Kong, there are over 25,000 agents servicing a total population of just 17 million people which has led to insurance contributing over 90 percent to the Gross Domestic Product, GDP, of Hong Kong. Efekoha said, “In Hong Kong, insurance contributes substantially to the GDP of the country with over 25,000 insurance agents which has greatly enhanced insurance penetration in that country. These are things that we should urgently begin to implement in Nigeria.” On why the Nigerian market has limited agents, Salami said, “For too long in the industry, everybody focused on corporate business. It was cheaper to run corporate insurance and get business from the public sector. But now, we see that we need to go way beyond that, so several of us are making the required investment in distribution of insurance. “We need to deliver value and good service to customers because they can also become our ambassador in getting other people to come and buy insurance because things are changing. The insurance industry of today, regarding claims is not the insurance industry of five years ago.”

This article was earlier published here

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One thought on “20,000 agents inadequate for insurance services in Nigeria.

  1. Great write up! I believe we can change this trend, only if the insurance company board(s) will integrate efficient compensation plans for agents. Also the industry still needs attention as people will not be willing to serve as agent to a less charted territory, The insurers need to do a lot of work to promote the industry. It shouldn’t always be about profit, there’s a spiritual intelligence side to corporate goodwill.

    Liked by 2 people

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