Insurance business in Nigeria is almost a century old, yet, its level of growth and acceptability among the insuring public is still unbelievably low.  Why?  Expert’s opinion is unanimous in condemning the practice of operators in sticking to their familiar old pattern without minding the culture and operational environment. wilson itsisor takes a look at the industry and the probability of exploring new grounds in order to take the industry to the next level.

Why does the insuring public have unexplainable apathy towards insurance practice?  Reason: the operators have failed to be proactive by exploring new areas and breaking barriers.
First, in the mode of practice over the years, a lot appears to be unclear to the insuring public around whom the business itself is woven.  Among these are the technical languages with which most insurance businesses are transacted. This has been further worsened by the activities of a few operators who repudiate from paying claims when the need arises.
Interestingly, however, among all existing businesses, insurance is one that has the greatest potential for growth.  This is traceable to the many untapped areas which operators have not looked into.  From the operational viewpoint of operators, their greatest undoing is keeping to their old traditional methods some of which the public have lost confidence in.
Industry watchers are of the opinion that the operators are not doing enough in new products development.  For instance, Nigeria ’s population is over 150 million people.  Yet, over the years, operators have struck to the traditional Life Insurance Policy which accounts for less than 5 percent of the population.  Also, operators ought to work on government to enforce the law that any employer who employs up to five percent ought to take insurance cover.
According to an analyst, Ambrose Umosor, a dynamic sector as insurance should be able to brainstorm and work out policies that will accommodate at least 60percent of the population.  “But, can the industry grow if operators fail to explore every conceivable opportunity to raise Life Assurance beyond its present low level?”
However, some keen observers have blamed poverty and ignorance on the part of the people for the slow pace of development.  But to what extent can the operators contribute in alleviating this poverty and ignorance?  Here lies some of the problems confronting the insurance.  If identified problems are not frontally addressed, the likelihood is that the status quo will remain.
Umosor posits that insurance practitioners should do extensive enlightenment, spread over every facet of life in order to break the barrier of ignorance to the growth of the industry.
Still on exploring new grounds, analysts say that that less than 10 percent of existing properties belonging to the various tiers of government are insured.  Every where you go, there are various government properties belonging to federal, states and local governments which are not covered with insurance policies. Yet, operators seem to be satisfied with the low level of such properties that are presently covered by insurance.
Analysts suggest that insurance operators should liaise with relevant government agencies to identify all such government properties up to the ward levels at the local government.  They opined that when concerted efforts are made by them, the dividends of such efforts will not only enhance the scope of business but also contribute to raising industry standard.
In addition, research findings show that in Nigeria , household items are usually not insurable as it is done in the developed nations.  Mr. Shola Olafimiyan explained that a sector like insurance with a greater potential for growth, should be active in evolving ways out of the doldrums.”  What does it take to get all Nigerians, for instance, who own household items to insure them against theft and fire?”
Olafimiyan said: “It takes a proactive insurance sector working with relevant government agencies to formulate, amend and change policies towards the enhancement of the insurance business”.
Another area which has remained largely untapped is motor vehicle insurance.  According to sources at the National Insurance Commission (NAICOM), over 70percent of vehicles on our roads are not insured.  Out of these less than 30percent of vehicles that are insured, majority of them carry third class insurance instead of comprehensive policies.
Besides, a large percentage of these vehicles carry fake insurance certificates.  Mr. Ambrose Umosor explained that everyday in Nigeria ; thousands of new vehicles are bought, noting that if an existing law says that all vehicles must be compulsorily insured, what stops the operators from deploying all their resources to ensure that this is fully complied with.
He blamed this slow pace of development on the winner-takes-all syndrome among operators which forbade them from working as a united front to raise the standard.  For instance, analysts believe that if the operators, individually and collectively, through the Nigerian Insurance Association and other professional groups, work hand-in-hand with NAICOM, the Federal Ministry of Finance and the National Assembly, the insurance coast will be further enlarged.
Industry watchers believe that vehicle insurance alone, if properly harnessed, is enough to cater for the greater needs of operators.  But because of the several leakages arising from the lukewarm stand of operators, the industry is still shrouded in myth and mystery.
Apart form public buildings and the unexplored vehicle insurance cover; the uninsured private buildings in Nigeria , especially story buildings are other areas which operators have not looked into.
Recently, the Lagos State House of Assembly proposed a bill which will see to the compulsory insurance of story buildings.  This was proposed to nip the cases of collapsed buildings in the bud.
Concerned watchers opined again that a proactive and innovative industry should have tapped into this area in order to enhance its growth.  Unfortunately, insurance operators have struck to their old grounds, many of which have failed to develop beyond their status even after several decades.
Notwithstanding stakeholders have been challenged to rise to their responsibility and raise the standard of the industry. This becomes critical, especially now that the consolidation wind is still blowing across the industry.  The good performance of insurance stocks on the floor of the Nigerian Stock Exchange (NSE) now is an indication of the positive effects of the reforms.
Therefore, if other factors militating against enhanced standard are addressed, the insurance industry may be the most vibrant in our economy.