General News
Understanding the Concept of Micro Insurance
The importance of micro insurance in bailing Nigerian out of its low insurance esteem cannot be over estimated. In recent times, the practice has been receiving tremendous support among operators. With the integration of insurance businesses in Africa, especially as the country makes in-road into African countries, experts have opined that the time to embrace micro insurance is now.
According to Dr. Mike Ikupolati, president of West Africa insurance Association, insurance over the world, has been found to be a major player in the socio-economic development of societies and more recently in strive towards poverty eradication in our societies. Insurance in West Africa cannot therefore be an exemption. Given its rightful place in this poverty alleviation crusade, Insurance can help tremendously in uprooting completely the causes and effects of poverty in our societies.
To provide protection against risks, the poor have in the past developed informal and non-insurance mechanisms such as diversifying income sources, building assets by saving money, stocking food and investing in housing and healthcare, strengthening social networks, participating in reciprocal borrowing and lending systems, welfare associations and other informal group-based insurance systems. Some of them are enrolling in formal insurance or pension schemes or other formal social security systems. It also involves managing money well by controlling consumption and maintaining access to multiple sources of credit selling assets, exchanging gifts, cash transfer, diversifying crops etc,.
In West Africa, people had tried “OSUSU” as a means of providing for unforeseen contingencies. Unfortunately these have proved inadequate and have instead retarded economic growth and social mobility. Many elderly people live in poverty due to limited access to pension plans and saving facilities. These are the specialties of micro-insurance products today. Since loan facilities are increasingly impossible to access by the poor, the micro-insurance principles take cognizance of the situation of the poor and hence created products and services that are at the reach of the poor.
With this privileged information at the back of our minds, let us attempt to have a better understanding of micro insurance.
Micro insurance is a financial arrangement to protect low-income people against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved (Craig Churchill, 2006). This definition Churchill adds does not refer to the size of the risk-carrier; some are small and even informal while others may be very large companies.
The scope of risk, the risk themselves are by no means ‘micro’ to the households that experience them.
The delivery channel can be done through variety of different channels including small community-based schemes, credit chains or other types of micro finance institutions, but also by enormous multinational insurance companies.
Micro insurance is synonymous to community-based financing arrangements (Peter et al, 2002), including community health funds, mutual health organization, rural health insurance, revolving drugs funds and community involvement in user-free management. Most community financing schemes have evolved in the context of severe economic constraints, political instability and lack of good governance. The common future within all is the active involvement of the community in revenue collection, pooling resource allocation and frequent service provision.
Insurance functions on the concept of risk pooling and likewise regardless of its small unit size and its activities at the level of single community, so does micro insurance. Micro insurance links multiple small units into layer structure, creating networks that enhance both insurance functions through broad risk pools and support structures for improved governance i.e. training data bank, research facilities, access to reinsurance, etc. This mechanism is concerned as an autonomous enterprise, independent of permanent external financial lifelines and its main objective is to pool both risks and resources of whole groups for the purpose of providing financial protection to all members against the financial consequences of mutually determined risks.
Transactions are low-cost and reflect members’ willingness to pay.
Clients are essentially low-net-worth but not necessarily uniformly low and
communities are involved in the important phases of the process such as package, design and rationing of benefits.
The essential role of the network of micro insurance units is over and above what each can do when operating as a stand-alone entity.
And finally that cooperation among stakeholders is the key to successful provision of micro insurance to the poor, who constitute the teaming population in West African; mainly illiterates and are of low-income group who could hardly afford the prices of the conventional insurance products, currently sold by commercial insurers.
Small benefits amount are clearly defined and simple rules and their restrictions are
easily accessible, encompassing claims documents requirements and fast payment of benefits.
Also of value is the need for specially adapted client education, affordable premiums payable in small amounts as exclusive as possible.
To thread successfully in this unpopular road, the insurance practitioners must be facing or are ready to face some obvious challenges. The key principles of innovation for this market with enormous potentials are;
conventional wisdom in delivery of products and services has to be challenged even as
significant investment in customer education is imperative.
Volume is also a basis for returns on investment especially as technology has to be combined with the existing infrastructure.
It is paramount that for micro insurance to be successful,government huge investment in guaranteeing confidence in the sector by the private sector is paramount.
The challenges of micro insurance in West Africa are many. It is vital to know that our local conditions are unfavourable premium income is low, administrative costs are relatively high and infrastructure for insurance support is lacking. These explain why the commercial insurers in West Africa have not taken more interest in this market. Reaching the poor people, many of whom are illiterates and making a living in the informal economy is difficult. And benefit of insurance is often misinterpreted since most of them do not understand why the premiums are not refunded if no claim is made.
These challenges are compounded by the following;
No mechanism to systematically reach the informal workers and the workers themselves are largely unorganized in most cases, especially in cases where there is no employer contribution.
The poor may not be able to afford the full cost of running a conventional insurance due to insufficient government resources to cover recurring expenses and
inadequate infrastructure to provide appropriate services.
Micro-insurance as social security therefore,
fills the gap to provide coverage to the excluded and responds to an urgent need in the absence of formal social security.
Ikupolati had stressed that it also creates delivery mechanisms to extend government programmes to the informal economy while striving to integrate the informal and the formal.
The institutions or set of institutions implementing micro-insurance are commonly referred to as a micro insurance scheme.
There are government policies and programmes to reduce poverty and vulnerability by diminishing people’s exposure to risk and enhancing their capacity to protect themselves but in West Africa, these programmes are not particularly effective.The main obstacles being no mechanisms to systematically reach informal worker as well as the absence of employer contributions as earlier stated.
Micro-insurance is not a new invention. The industrial life assurance sold at factory gates in American cities in the early 1900s made the then Metropolitan life insurance company, the largest industrial life assurance as the forerunner of what today is known as commercial micro-insurance.
It was simply a response to a market demand managed in a manner that made the products appropriate for the market. The delivery channels, agents at each factory gates, were specific to this market. The premiums reflected the particular risks of the factory worker market. Coverage responded to the workers specific needs, premium collection on pay day as the workers exited the factories were efficient. In general, industrial life assurance was then a response to a market that provided access to quality insurance products for low income workers and access to a large market for the insurers.
Today the need to meet the demand of the poor is becoming increasingly significant as majority of the population in West Africa especially live in the rural areas where access to micro-finance has been limited and hence insurance provisions are at low ebbs. Consequently, the provision of insurance products to micro-finance clients is becoming increasingly common and popular. Much has been learnt over the past decade about how to design products to better meet the needs of the poor.
The provision of any financial services to the poor must start with an understanding of client demand.
What are the financial needs of the poor?
In developing economics and particularly in the rural areas, many activities that would be classified in the developed world as financial are not monetized, that is, money is not used to carry them out. Almost by definition, poor people have very little money. But circumstances often arise in their lives in which they need money or the things money can buy.
In Stuart Rutherford’s recent book The Poor and Their Money, he cites several types of needs
Lifecycle Needs: such as weddings, funerals, childbirth, education, home building, widowhood, old age.
Personal emergencies such as sickness, injury, unemployment, theft, harassment or death as well as disaster such as fires, floods, cyclones and man-made events like war or bulldozing of dwellings.
The work of Rutherfod, Wright and others had caused practitioners to reconsider a key aspect of the micro-credit paradigm: that poor people get out of poverty by borrowing, building micro-enterprises and increasing their income. The new paradigm places more attention on the efforts of poor people to reduce their much vulnerability by keeping more of what they earn and building up their assets.
While they need loans, they may find if as useful to borrow for consumption as for micro-enterprises.
A safe, flexible place to save money and withdraw it when needed is also essential for managing household and family risk.
Poor people over the years have found creative and often collaborative ways to meet these needs, primarily through creating and exchanging different forms of non-cash value. Hence, the idea of micro insurance cannot be totally strange to them.
Therefore, micro insurance can be offered in many areas among them; health risks, injury or death as well as property risks such as agriculture risks such as low yield, theft travel risks etc,. Individuals in the low-income bracket have needs and preferences that may vary. Micro insurance product design must therefore reflect this heterogeneity and premium payments should also be tailored to the customers’ cash flow position.
Over the past 10 years, families have experienced shifts in structure and a perceived increase in fragmented interactions at home, largely driven by the pervasive use of technology and changing social norms. What does the next decade hold in store?
According to a global survey* by Kaspersky’s market research center, an overwhelming 81% of people believe digitalisation will fundamentally alter families’ joint pastimes within the next decade. This shift points to a future where bonding is mediated by advanced technology, creating new rituals and challenges in equal measure.
Screen time is family time, but it has its risks
Nearly half (48%) of all respondents envision AI-powered bedtime stories becoming a norm, a figure that rises to 53% among 18–34-year-olds. Today, apps and smart devices offer AI-narrated tales with customisable characters and plot twists.
For the busy parent, it presents a novel aid, for the child, an endlessly patient, interactive storyteller.
Meanwhile, with 31% of families anticipating children opting for digital pets over real ones, it seems that ‘man’s best friend’ just got its first update.
It should be noted, however, that while AI has the potential to enrich a child’s life, it necessitates vigilance. When children interact with AI, for stories or learning, parents must be proactive.
Select services with strong privacy policies that do not unnecessarily store or misuse a child’s data or voice interactions and further enhance control with digital parenting assistants like Kaspersky Safe Kids to restrict content and balance screen time.
Parents would be well placed to treat AI interactions as a new digital playground where they can use parental controls to limit session duration, choose vetted, age-appropriate AI story platforms, and most importantly, maintain an open dialogue about what these stories are and how they are created. Explain to children that an AI is a tool, not a friend, and encourage them to report any strange or uncomfortable interactions, just as they would in the physical world.
The key is to ensure AI complements human interaction, not replaces the comfort of a parent’s voice.
Blowing out the digital candles
Another 43% predict family celebrations migrating to video call formats as a standard, not an exception, a trend accelerated by recent global events but now seen as a permanent fixture for dispersed families.
Meanwhile a daring 26% can imagine taking family vacations entirely in virtual reality. This sounds like the stuff of science fiction, but then 10 years ago, the type of generative AI being used today was not widely anticipated.
This fragmented outlook highlights that the future of family digital activity will not arrive as a uniform wave, but as a series of adoptions shaped by cultural openness and digital infrastructure. For security leaders like Kaspersky, this evolving landscape presents new vectors for risk within the most intimate of spaces, the smart home.
Preparing the digital home for tomorrow’s family
43% of all respondents foresee home robots as family members. Moving beyond voice-activated personal assistants or autonomous vacuum cleaners, these would be embodied AI companions capable of tutoring, playing games, or providing companionship.
In the eyes of hackers, however, every new device, from a VR headset to a robot nanny, is a potential entry point. To keep things secure, change default passwords immediately, ensure all device firmware is regularly updated, and segment your home network.
Use Kaspersky Premium with a Smart Home Monitor which scans users’ home Wi-Fi network 24/7, and shows a list of devices connected to it, including such details as device type, OS and IP address, and alerts when a new or unknown device connects.
As robots, AI, and VR devices become part of the family circle, security must be foundational, not an afterthought.
“The accelerating pace of technology is not fragmenting the family but redefining its shared spaces. The future, as seen by the global majority, is one where digital and physical experiences blend to create new forms of togetherness, from a grandparent joining a birthday party via hologram to a child caring for a digital pet with a sibling across the globe.
“The challenge and opportunity lie in building secure digital environments with intention, ensuring they are safe, respectful, and ultimately, tools that bring us closer,” comments Seifallah Jedidi, Head of Consumer Channel for META at Kaspersky.
General News
Corporate Comms in the Age of Crypto: Why Nigeria’s Digital Finance Future Depends on Trust
By John Kokome
By the time you finish reading this article, the price of Bitcoin may have changed twice. That is the nature of cryptocurrency, fast, volatile, and borderless. Yet beyond price charts and trading apps lies a less discussed but critical pillar of Nigeria’s digital finance revolution: corporate communications. In the age of crypto, communication is no longer a support function. It is infrastructure.
Nigeria is one of the world’s fastest-growing crypto markets. Chainalysis ranked the country second globally in cryptocurrency adoption in 2023, driven largely by everyday retail users rather than institutions.
Between July 2023 and June 2024 alone, Nigerians received an estimated $59 billion in cryptocurrency value, the highest in Sub-Saharan Africa. Yet public perception remains sharply divided, crypto is seen as opportunity by some and risk or outright scam by others.
In such an environment, how crypto companies communicate can determine whether they earn trust, attract scrutiny, or lose credibility entirely.
The Complexity Challenge
Blockchain, decentralised finance, wallets, custody, smart contracts etc., are not everyday concepts for most Nigerians. Yet millions are expected to trust these systems with their savings, businesses, and livelihoods.
Corporate communications must therefore evolve from promotion to translation. Crypto companies must become educators, simplifying complex ideas without downplaying risks.
Hype must give way to clarity; speculation must yield to responsibility.
Some homegrown platforms, including FlashChange and other emerging African crypto brands, have begun prioritising financial literacy and user education. That shift is encouraging, but it must become the industry norm, not the exception.
Trust as a Strategic Asset
Trust in financial institutions is fragile globally, but particularly so in emerging markets where currency devaluation and policy uncertainty are familiar experiences. Crypto gained traction in Nigeria partly because people sought alternatives.
Still, crypto companies cannot assume automatic trust. In traditional banking, trust has been built over decades. In crypto, trust is built in real time, on social media, customer support channels, and community forums.
A single outage, security breach, or regulatory misunderstanding can escalate into a reputational crisis. Silence is read as guilt. Ambiguity feels deceptive. Delay looks incompetent. In Nigeria’s fast-moving digital ecosystem, communication speed must match market speed.
Nigeria’s policy evolution on crypto reinforces this point. In December 2023, the Central Bank of Nigeria (CBN) issued guidelines allowing banks to open accounts for Virtual Asset Service Providers, effectively shifting from restriction to regulation.
The CBN acknowledged that global trends demand oversight, not exclusion, while warning of risks related to money laundering, terrorism financing, and consumer protection gaps.
The Securities and Exchange Commission (SEC) has echoed this stance, emphasising that Nigeria’s digital asset future must be anchored on innovation, collaboration, and trust, with clear licensing and investor protection frameworks.The message is clear: crypto is now part of Nigeria’s financial architecture, and communication is central to compliance.
A Young, Digital Audience
Nigeria’s demographics explain crypto’s momentum. According to the National Bureau of Statistics, over 63 percent of Nigerians are under 25, and internet penetration now exceeds 50 percent, driven largely by mobile broadband. This digital-native population consumes information quickly, questions authority openly, and shapes narratives in real time.
Corporate communications teams must engage this audience with transparency and relevance, not marketing noise.
Crisis Communications in a 24/7 Market
Crypto markets never sleep. Crises do not respect office hours. Hacks, liquidity shocks, and regulatory announcements can happen at any moment.
Communications teams must therefore operate like newsrooms prepared, responsive, and coordinated. Pre-approved crisis playbooks, trained spokespersons, and real-time monitoring are no longer optional.
Most importantly, crisis communication must be human-centred. Nigerians want clear answers: Is my money safe? What happened? What comes next?
Brands that respond with honesty and empathy endure. Those that hide behind jargon do not.
Narrative Capital vs Market Share
In Nigeria’s crowded fintech and crypto space, companies often compete on fees and features. But the most durable advantage is narrative capital the credibility and emotional connection built over time.
Narrative capital determines whether users stay during downturns, regulators listen during consultations, and the media seek your voice. Platforms like FlashChange have a responsibility to tell Africa’s crypto story with authenticity, data, and purpose.
From Evangelists to Translators
Nigeria no longer needs crypto evangelists promising disruption. It needs translators, professionals who connect blockchain to remittances, wallets to small businesses, and decentralisation to economic opportunity.
As crypto matures, corporate communications will increasingly determine its legitimacy. Code may power platforms, but communication powers confidence. And confidence, more than any algorithm, will decide whether digital finance fulfils its promise for Nigeria.
John Kokome is the Corporate Communications Manager at FlashChange, a fintech platform redefining secure digital asset exchange. With experience across fintech, cryptocurrency, telecoms, and development communications in Africa. He currently leads strategic storytelling, reputation management, and stakeholder engagement initiatives at the company, focusing on building trust, transparency, and financial literacy in the digital assets space. John’s work sits at the intersection of policy, technology, and public perception, with a strong emphasis on Africa-first narratives and responsible innovation. He has contributed opinion pieces and thought leadership articles on governance, youth empowerment, branding, and Nigeria’s evolving digital economy.
Senate has confirmed Hon. Justice Joseph Olubunmi Kayode Oyewole, JCA, as a Justice of the Supreme Court of Nigeria.
Hon. Justice Joseph Olubunmi Kayode Oyewole, JCA
The confirmation was concluded on Tuesday, February 3, following the presentation and consideration of a report by the Senate Committee on Judiciary, Human Rights and Legal Matters.
The report was presented by the committee’s chairman, Senator Adeniyi Adegbonmire of the All Progressives Congress, representing Ondo Central.
Presenting the report, Senator Adegbonmire said: “That the Senate do Receive and Consider the Report of the Committee on Judiciary, Human Rights & Legal Matters on the confirmation of the nomination of Hon. Justice Joseph Olubunmi Kayode Oyewole, JCA, as a Justice of the Supreme Court of Nigeria.”
The confirmation followed a formal request by Bola Tinubu, who wrote to the Senate last Tuesday seeking legislative approval for the appointment. The letter was read on the floor of the Senate by the President of the Senate, Godswill Akpabio.
In the letter, President Tinubu stated: “Pursuant to Section 231 (2) of the 1999 Constitution of the Federal Republic of Nigeria as amended.
“I am pleased to present for confirmation by the Senate the appointment of Hon. Justice Oyewole Kayode as Justice of the Supreme Court of Nigeria. While it is my hope that the Senate will consider and confirm the nomination expeditiously, please accept the assurances of my highest regards.”
Following the reading of the letter, Akpabio referred the executive communication to the Senate Committee on Judiciary, Human Rights and Legal Matters for further legislative action.
The committee was directed to carry out its work and report back to the Senate as soon as possible, a process that culminated in the confirmation approved by the chamber.
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