ICT, panacea for growth of insurance market–Shittu

The Minister of Communications, Barr. Abdur-Raheem Adebayo Shittu has said nation’s insurance sector has not leveraged on Information and Communication Technology, (ICT) to grow the potentials of the industry in Nigeria.

The Minister made this disclosure while delivering a keynote address at the e-Insurance Conference organised by Pinet Informatics Ltd at the Sheraton Hotels and Towers, in Lagos titled, ‘Driving Insurance penetration with Information and Communication Technology’.

Shittu noted that the nation’s insurance sector, which provides support to the financial institutions has not been fully explored, adding that “the Insurance sector despite being a major driver of business growth that provides a critical support system to the financial market has not fared well given the current size of the Nigerian economy and population.

“Information available to me indicates that there are less than 1.5 million insurance policyholders, representing a paltry 0.9 percent of a population of well over 170 million citizens. Similarly, the gross premium of the sector is said to be less than 500 billion naira, implying that the sector contributes less than 1 percent to national GDP”.

He expressed confidence in the performance of the ICT sector as the fourth pillar of the Nigerian economy, haven recorded positive growth in 2016 in spite of the recession, stressing that ICT tools could be utilised to develop innovative solutions to improve insurance practice, increase product development and expand market activities in the insurance sector.

According to the minister, process through ICT could be leveraged by the insurance sector includes improved operational efficiency-(smooth communication between clients and company officials), office automation and optimisation, digital marketing and online marketplace for assessment and purchase of insurance packages.

The minister said that in other climes, e-insurance has already been fully adopted and various insurance products can be obtained through online insurance portals, which are programmed to tailor unique insurance packages to the distinctive individual requirements of prospective customers.

Some aspects of insurance that have been adapted to e-Insurance, he added, include auto and car insurance, health insurance, home insurance and life insurance.

The minister who was delighted with the organisers of the conference promised that government will continue to introduce and drive policies that will propel Nigeria to attain the status of a knowledge-based nation.

He revealed that the ministry will further seek to grow the ICT sector contribution to GDP, expanding broadband infrastructure and consequently resulting in improved quality of service, continuous capacity building to create a smart public sector workforce, and use ICT tools to increase government revenues, block leakages and reduce waste, while fostering transparency and accountability.

Earlier in his welcome address, Engineer Lanre Ajayi, the convener said that the Conference was to drive home the need for technology and insurance sectors collaboration to drive penetration.

Ajayi, the Managing Director of Pinet Informatics said that they saw the gap and came up with the initiative so that successes recorded in the telecommunications sector can be replicated in Insurance industry.