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Finance | Insurance

Understanding Policyholders' Dilemmas

Apr 28, 2022   •   by   •   Source: Others   •   eye-icon 271 views

Thursday, April 28, 2022   /01:00 AM / Op-Ed By Ekerete Ola Gam-Ikon / Header Image Credit: Insurance Age

The main advice of our April 2022 Insurance Advisory was: Be Informed About the Insurers and Stay Updated

This was informed by the increased enquiries about the state of insurance companies in the face of reported non-payment of claims by a few operators, so the Advisory detailed specific areas to consider including seeking to know the Insurers recently issued Notice of Withdrawal of Licence by the Regulator, National Insurance Commission (NAICOM). See the full April 2022 Insurance Advisory here

Expectedly, comments and questions have come from readers - existing and potential policyholders, policymakers and other industry stakeholders, since the first Insurance Advisory went out in January this year. 

Sharing Feedback 

This interesting feedback landed my WhatsApp a few days ago and the urge to share was overwhelming because of the learning points for both the insurers and policyholders, as well as the rest of us, from the Conversation  

A Lady Entrepreneur (Policyholder) put a call to her Insurer's Contact Person 

Policyholder: Good morning Sir and trust the month has been great. 

Insurer: It's been very tough Madam but we're doing our best. What can we do for you today? 

Policyholder: Ok thanks. I just wanted to know the insurance companies that your Regulator had given Notice of Withdrawal of Licence so we'll be guided. A couple of us have been talking about your industry lately. 

Insurer: But Madam, you know our Company is not in that position. You have nothing to worry about so long as we continue to handle your insurance needs. 

Policyholder: Just wanted to be properly informed. No problem. 

Insurer: Ok Madam but I thought you would give me that referral we talked about... 

Policyholder (cuts in): Those ones? They need an insurance company that is transparent and willing to provide information when needed. We hear some insurance companies cannot give you receipt or effect cover if you make payment on a Saturday except you use their App? 

Insurer: That is true, Madam. In our Company, it is the same thing. 

Policyholder: Ok thanks, we will talk some other time. 

Insurer: Thanks so much for calling and have a nice day 

Analysing the Feedback  

From the perspective of a Customer Advocate, who has repeatedly asserted that one of the problems with the insurance industry in Nigeria is leaving too many unanswered questions from policyholders and expanding the trust deficit, the Insurer in this conversation: 

1. Failed to recognize that the question was apparently very important to the Policyholder and deserved a direct answer. The Policyholder, indeed, said "A couple of us have been talking about your industry lately." This was an opportunity to get their impression and make some corrections or better educate them, as necessary. 

2. Failed to understand that the call was to confirm the names of the Insurers given notice by NAICOM and not about the relationship his Company had with the Policyholder. Or if he did not know the answer "Let me check and come back to you immediately" would have been a more appropriate response. 

3. Failed to notice the disappointment of the Policyholder by his unimpressive answer and proceeded to seek answer for his own concern. Poor timing. 

4. Failed to notice the polite insult by the Policyholder probably due to inexperience on his part. 

5. Failed to handle the reference to the use of App for transactions by enlightening the Policyholder about theirs as it was obvious that the Policyholder had not yet downloaded it. 

Considering the Policyholder, was she not expecting too much from the Insurer, who, in this case, was just a Marketing Executive? 

May be, no, because you are expected to be informed and updated about goings on in your industry or smart enough to say "Let me check and revert" and get yourself some space. 

Some Insurers have really smart and impressionable marketing executives but this one in this conversation failed to use his opportunity well. 

Further Advice for Policyholders

Like the Policyholder in this conversation, reach out to your Insurers more often to understand the place of your relationship and the chances of getting value out of your contract when the occasion arises. 

Policyholders are therefore further advised to: 

1. Insist on getting answers to their questions. Referring to the conversation above, the Policyholder could have pulled the Insurer back by repeating the question and made him to commit to getting back to her later with the answer. If you are known to be a Policyholder that insist, your issues will be addressed promptly. 

2. Understand that certain insurers do not have an effective internal communication system. So seek to ensure your Insurer is one that informs and updates her employees regularly about the industry. Your contact person can only tell you what he/she knows. 

3. In view of 2 above, Policyholders should not wait until they have claims before having conversations with their Insurers. If your Insurer is not sending you updates on her Claims Payouts periodically, call to find out and be abreast, so that you will not be suddenly surprised about the sordid stories of others when you approach the office for your payout.

4. Retain the services of an Insurance Broker or Consultant that will constantly inform and update you and handle issues with your Insurer on your behalf. This helps to allow you focus on your business and enjoy the peace of mind promised by insurance, sometimes, at no cost. 

5. Importantly, digitization is with us and insurers have embraced it as a means of delivering ease and convenience to Policyholders especially in terms of products and distribution. Demand for those ones that are either ready or getting ready and consider moving there. You deserve value from your Insurer and not disappointing explanations because you were promised value. 

We are moving towards that season when stronger insurers will be more visible and the insuring public would need to KNOW them but with the current system it is still challenging for policyholders.  

Our monthly Insurance Advisory will continue to provide guidance and direction but more individuals and organisations need to take their insurance contracts more seriously for the advice to make sense. 

Looking forward with more confidence in the insurance industry in Nigeria is our objective and we are committed to this through improving the insurance experiences of policyholders and investors. 

About The Author 

Ekerete Olawoye Gam-Ikon, MNIM, CPP, is a management consultant with a specialization in Strategy and Insurance. You can contact him via e:mail [email protected] and mobile +234-806-648-1111 

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