Tony Eumelu Highlights What To Do To Change The Face Of The Nation’s Insurance Industry
Extraordinary businessman and chairman of Heirs Holdings, Tony Elumelu has said that a well-regulated industry is what the insurance sector needed to claim its place as far as contributing to the nation’s economy is concerned.
Mr. Elumelu, whose one of the conglomerates he oversees – Hiers Holdings launched two insurance outfits – Heirs Insurance and Heirs in June 2021 – stated this at the 60th Anniversary of the Nigerian Council of Registered Insurance Brokers (NCRIB).
Themed “60 Years of Insurance Broking: Redefining the Practice and the Practitioners” and had Governor of Lagos State Babajide Sanwo-Olu and Ondo State Governor, Rotimi Akeredolu as Chief Host and Chairman respectively, the event afforded Mr. Elumelu the opportunity to once again reel out the good things associated with well-regulated financial services.
He said “I know the good that can come from a deep and well-regulated financial services. As the Chairman of Heirs Holdings, my family-owned investment company, we change lives in Africa and are transforming our continent – Financial services are critical pillar of what we do – that is why we launched Heirs Insurance and Heirs Life.
That is why at United Bank for Africa – UBA – we transformed access to banking, made banking available to the people, in Nigeria – but also across Africa. That is why UBA is present both on our continent and also in France, USA, UK, and, most recently, the UAE, in Dubai.
At the Tony Elumelu Foundation,we are empowering young Africans across the 54 countries of our continent
So far, over 15,000 young African entrepreneurs have benefitted directly from our Foundation. We know that access to capital is scarce, and support networks are poor – we fill the gap.
We democratise luck – just as we democratised banking and are democratising insurance. Simply put – financial services are not a privilege, but a right – we want to make simple, smart insurance available to all.”
The African economist, despite recognizing NCRIB for its roles in facilitating insurance businesses in hundreds of billions of naira and putting smiles on the faces of millions of Nigerians through their services, insisted more needed to be done.
“But let us ask ourselves are we doing enough? We need to be candid and frank. Our industry’s contribution to national GDP is tiny. Our reputation could be better, our practices more professional, our promises to our customers always honoured”, he said.
“A deep, well-regulated industry is a benefit for all – not least for the professional broker – the trusted and necessary confidant of the client.
It is a time of great pessimism – but I am not a pessimist. I see the opportunities, I see our industry’s potential, so let us all join together for the common good”, Mr. Elumelu further stated.
“We as an industry need to enforce strict adherence to corporate governance by all NCRIB members, We should weed out non-registered and non-compliant members.” The respected business leader who believes the insurance brokers should be at the forefront of the fight against any form of unethical practice submitted.
Addressing the gathering further Mr. Elumelu identified innovation, technology, aggressive awareness, forging alliance with relevant regulators (NAICOM and CBN), and courting young generation of talents as the much-needed catalysts for the desired growth of the insurance sector of the nation’s economy.
He said, “Innovation is inescapable. At Heirs Insurance and Heirs Life, we champion innovation – we cannot afford not to. Our customers demand it and the industry needs it. The insurance industry can benefit from innovation across all aspects of our services. For this to happen, there is the need to reward and incentivise innovation across the industry. Set up industry annual innovation awards.
“The industry must also benchmark against global trends. Look at retail insurance. Traditionally, brokers in the market have been recognised as corporate insurance specialists. It is time that the broker community began to shift focus to retail because this is where the future of insurance lies in Nigeria. Brokers have the capacity to lead in this area.
“Ladies and gentlemen, innovation and disruptive practices cannot occur, if we do not broaden our thinking and creativity. Profits from existing lines are not going to deepen insurance penetration, rather we must look at our biggest yet untapped market – the retail market.”
We must create Awareness… There is a need to generate more awareness and showcase the value of insurance to the public, promoting participation, most especially in the retail space. We must bridge the insurance awareness gap, if we are to make insurance attractive to Nigerians.”
“In the area of Technology… To remain relevant in the modern business arena, the insurance broker community and, by extension, the entire Nigerian insurance industry, must embrace technology fully. NCRIB also needs to work towards positioning its members properly for digital integration, mediating between the insuring public and the underwriters digitally”.
“You know I believe in our young.There is need to capture our young in the insurance habits from cradle to grave. And there is an urgency to develop the next generation of talent to serve the Nigerian insurance industry. The broker community should rally and become the hub for the education and training of our youth.
“In those days when I was in university, what drove me to want to join banking? It was the professionalism, the path to greater things, the sense of purpose – and yes the snappy suits…. We need to raise the profile of our insurance professionals, make the profession attractive for the younger generation – to be a broker should be an aspirational choice”.
“Apart from collaborating with other industry players as I mentioned earlier, redefining the brokerage profession will entail collaboration with non-industry practitioners as well. Eg, our regulators (CBN and NAICOM) should collaborate on clients KYC due diligence. Insurance remains a viable tool for financial inclusion in every country and Nigeria cannot be an exception.”
“Our two insurance companies, Heirs Life Assurance and Heirs Insurance Limited, are both committed to democratizing access to insurance – which is a great tool for financial inclusion, employment creation, poverty eradication and women inclusion. NCRIB as a body has the ability to partner with others to support financial inclusion drive in Nigeria.”
