Before insurance industry can be viable among other sectors of the economy in the country, there would are to create systematic awareness through advertisement in the print media, radio and television, Finance Minister, Kemi Adeosun, has said. The minister, who made this known in a chat with journalists in Abuja, attributed the operators’ failure to advertise as one of the major reasons for the underdevelopment in the industry.
She stressed that there was need for them to embrace advertisement to grow their business operation by taken it to next level. She emphasised that out of 57 operators, less than half advertise in the print media, less than 20 on radio and less than 10 on TV. “There are several factors that contribute to the underdevelopment of the insurance industry. It majorly includes low awareness.
“There is also the issue of poor distribution channels. Operators of the industry have only focused on one channel, which are brokers. This has led to a huge gap in market penetration especially in the retail market which is our greatest opportunity for growth,” she said. She further said the challenge of under penetration and non-compliance with the laws relating to compulsory insurance of vehicles, property among others is a much debated issue, combination of poor government enforcement and poor industry practice…Read more