Experts urge Insurers, Brokers to Adopt Information Technology in Business Processes
Experts have called on insurance companies as well as brokers to adopt Information Technology (IT) in their business processes to make a huge impact in the economy.
The experts who made this assertion at the Nigerian Council of Registered Insurance Brokers(NCRIB)’s 60th Anniversary Grand Ball & Night Of Honour in Ikeja, Lagos on Wednesday, added that, through technology, the abysmal insurance penetration level will definitely improve.
The chairman, Zenith General Insurance Company Limited, Dr. Jim Ovia, disclosed that technology ensures that insurance industry information sharing is seamless, and incorporated into the underwriting process, while it has the tendency of reducing fraud risk (claims settlement) and cost of operations.
Ovia expressed his belief that adoption of technology improves consumers’ trust and confidence in insurance companies, adding that technology is equally central in insurance products development as well as the brokerage fraternity.
Commenting on the role of brokers in the insurance industry value-chain, he pointed out that there are over 500 registered insurance brokers who collectively control the market, with around 52% contribution to gross premium income (GPI).
He, however, revealed that Nigerian Insurance brokers also tend to earn higher commission than is attainable in other African countries, while the broker market in Europe accounts for 20% to 45 per cent of gross premiums.
He lamented that because of the monopoly of brokers in the insurance industry many brokers capitalise on this monopolistic power which has led to inadequacy of rates and premiums for demanded cover, inappropriate policy terms and conditions as well as failure to or delays in providing documentation and information and coercion to make ex-gratia payments.
He insisted that this must be addressed going forward, stressing that adoption of technology can address some of these unhealthy practices, thus, making insurance brokerage and underwriting seamless and efficient.
The president, NCRIB, Barrister Rotimi Edu, hinted that technology plays a crucial role in different aspects of modern day society and in life, starting from the basic routine tasks to the cumbersome responsibilities, as well as playing crucial business processes.
