Why We Educate Our Customers: Only A Knowledgeable Customer Can Make Informed Decisions

Feb 14, 2018 , , , , , , ,

Since 1918, when the first insurance company was established in Nigeria, the country’s insurance industry, relative to its peers in other thriving economies in Africa, has been plagued by the recurring problem of low penetration. Currently, the statistics of insured Nigerians being served by the insurance sector lies at less than [i]1% of the adult population. This means that a staggering 95 million Nigerians are without the important instrument of financial security – insurance. Hence, when an unfortunate incidence impacts their assets, they are either damaged or lost forever, if the affected asset owner does not muster the funds to replace them.

According to a study carried out by [ii]Enhancing Financial Innovations &Access, a financial sector development organization that promotes financial inclusion in Nigeria, 47% of uninsured Nigerians blame their lack of insurance on not knowing the benefit of insurance and not knowing where to purchase insurance products. This is a shocking revelation because many Nigerians on a daily basis experience various risks that could be covered by insurance, but are unprotected due to low financial and insurance literacy.

The implication of this huge insurance gap is that a vast majority of Nigerians may never benefit from the protection insurance offers in their lifetime, as it is the case in other climes. Nevertheless, the reality is that unfortunate life events can happen to anyone, irrespective of their supposed preparedness and this could adversely reverse the comfortable financial position many would have thought they had.[iii]For example, 27% of Nigeria’s adult population have experienced the death of relatives, 34% have experience illness of a household member, while 7.4% have experienced loss of agricultural produce.

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Financial literacy in Nigeria is poor, compared to the rest of the world and, over the years, this has consequently led people to remain unaware of the benefit of financial instruments that offer security. This lack of basic financial understanding typically leads to poor financial decisions. By having access to appropriate insurance education and products, people need not suffer negative financial consequences in the face of emergencies.

For this reason, Leadway Assurance Company Limited has taken it upon itself to improve Nigeria’s financial literacy by providing insurance education to millions of Nigerians,so that they can be better equipped to provide financial security for their family and for themselves. Leadway Assurance in 2016, initiated the ‘Insuring Happiness’ series to aid readers in understanding financial planning, insurance know-how and terms, as well as Leadway’s insurance products,so that they can make informed financial decisions and live a worry-free life. This very edition is the 100th in the series, a testament to Leadway’s dedication to this endeavour.

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Since 1970, Leadway Assurance has strongly maintained their goal of insuring happiness, adequately providing unique customer-focused insurance products and services for families, businesses and organizations across the country. Along other strategies aimed at deepening insurance penetration in Nigeria, Insuring Happiness has been a tool used by Leadway Assurance to emphasize the importance of financial protection, promote financial inclusion and ultimately enhance financial stability in Nigeria, by talking about insurance as a medium of financial security. By looking at various industry issues, trends and symbolic days, the Insuring Happiness editorial series has for 100 consistent weeks provided answers and made clarifications on the nuances of insurance, ensuring that readers understand the most difficult concepts in the easiest possible way.

This is necessary because, even with the array of insurance products available on Leadway Assurance’s offering, it would be of no use to customers who do not actually understand or see the usefulness of having an insurance cover as a critical factor in ensuring a happy life. Insuring happiness creates an avenue for customers to interact with Leadway Assurance and get introduced and better acquitted with Leadway’s products and services.What better way for a brand to show its customers that they are indeed valued!

Insure your happiness today! Call us on any of the following lines – (01) 2800 700, 2800 701 or 0812 999 7037 – to learn more about the insurance package that is right for you. You can also send an email to: Lcs@leadway.com for more information on how to join the league of happily insured Nigerians.

[1] ‘94.4% of adults have no insurance cover’, thenationonlineng.net, 2017

[1] ‘EFInA Access to Financial Services in Nigeria’, efina.org.ng, 2014

[1] ‘EFInA Access to Financial Services in Nigeria’, efina.org.ng, 2014

 

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