Stakeholders in the insurance and pension sectors have urged operators to deploy funds raised through recapitalisation to improve services, develop innovative products and strengthen customer confidence
They made the call on Thursday in Lagos during a panel discussion at the 11th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE). The theme “Post-Recapitalisation Market Dynamics in Insurance and Pension Sectors”, also drew the prowess of the panellists who insist the success of recapitalisation should be measured by its impact on policyholders, contributors and the wider economy, rather than the amount of capital raised.
Speaking on the insurance sector, Mrs Jacqueline Agweh, Managing Director, SanlamAllianz General Insurance, said the post-recapitalisation era had given insurers an opportunity to develop products that addressed customers’ specific needs. She cleared, insurers must closely work with customers to understand those needs and provide tailor-made products and services.
According to her, innovation, digital transformation, user-friendly devices and self-service platforms will be critical to improving customer experience. She therefore, advised insurers to simplify onboarding processes and use technology to improve risk assessment, claims investigation and other operations.
She also called for greater focus on retail insurance and micro-insurance, stressing that affordability and simplicity were key to deepening insurance penetration. “Bulky policy documents and complicated terms often discourage people from taking insurance products. Insurers must make their systems seamless and develop digital platforms that would enable customers to access insurance services conveniently,” she said.
Agweh further advocated embedding insurance into everyday economic activities, so that it becomes an integral part of consumers’ daily transactions.
“Why can’t my phone be insured from the point of purchase? Why can’t you bring it in? Sometimes it is so subtle, you don’t even see that they pay for insurance,” she said.
Also speaking, Mr Babalola Rufus, Executive Director, NLPC Pensions, urged operators to ensure that policyholders and Retirement Savings Account (RSA) holders had their funds secured, properly invested and paid when due. He noted that shareholders and contributors had committed funds to the insurance and pension sectors expecting value from their investments and contributions.
He said the success of recapitalisation in both sectors should ultimately be judged by the benefits delivered to customers. According to him, recapitalisation should result in stronger institutions, better investment decisions, improved services, wider participation and greater accountability.
On his part, Mr Peters Elendu, Managing Director, Zenith Pensions Custodian Ltd., advised pension operators to invest in technology, artificial intelligence, data analytics and innovation to make pension services easier and more accessible.
Elendu, who was represented by Mr Alfred Nkuma, Head, Safekeeping and Corporate Action at the firm, also called for investment in human capital to ensure that employees had the skills required to drive technological transformation in the sector.
He said recapitalisation should not be viewed merely as a regulatory compliance exercise but as a strategic opportunity to build resilient institutions. Adding that the focus should now shift from the capital raised to effective deployment to solve problems and create long-term value.
Nkuma said pension fund custodians had a responsibility to safeguard pension assets, diversify investments and ensure liquidity to meet beneficiaries’ obligations.
He noted that trust and confidence were critical to sustaining contributions to the pension system.
Nkuma assured that custodians would continue to prioritise the safety, availability and growth of pension assets belonging to Nigerian workers.
Earlier, Mrs Ebere Nwoji, Chairman of NAIPE said the conference was organised to bring together regulators, industry operators and investment experts to examine how the capital raised by insurance and pension institutions could be deployed prudently.
Nwoji said this was because effective investment of the funds would help generate sustainable returns for investors, strengthen the economy and improve the long-term financial security of Nigerians.
