Policyholders of insurance companies are demanding cash back from the N726.2 billion gross premium income (GPI) generated in the year 2022.
They noted that an insurer who consecutively renews an insurance policy for five years without any claims record within that period should get a cashback.
The policyholders spoke to The Guardian at a workshop between the Nigerian Insurers Association (NIA) and the Lagos State Ministry of Finance, held in Lagos.
They called on the new administration through the National Insurance Commission (NAICOM), to introduce premium rebates to policyholders that have constantly renewed their policies but did not suffer any insured risk within five years.
Adegbenro Ajose, one of the policyholders to an underwriter, said premium cash-back should come in the form of cash give-back or discounted rate in the subsequent years, saying that it would also encourage uninsured Nigerians, who have the notion that insurance companies are collecting free money from the public.
Ajose said for the past 10 years, he has been a policyholder for an insurance company. “I renewed insurance for my car and didn’t have any claims record since I wasn’t involved in any accident. So, I would expect my insurance company to give me a cashback or discounted rate the next time I renew my policy,” he said.
He urged NAICOM to introduce a policy that would direct insurance operators to give rebates to their policyholders.
According to him, “If this is achievable in the industry, it will persuade more Nigerians to accept insurance policies, because most Nigerians are still seeing insurance as a scam because of the model of not compensating those who never had reason to submit for claims.
However, checks by The Guardian showed that some underwriting companies are already granting discounts, especially, for comprehensive policies for this category of insured, which shows that most underwriters are yet to adopt the model.
Also, in a paper delivered during a visit of insurance and pension journalists to the Coalition of Associations in, Lagos, its President, Timi David, urged underwriting firms to introduce cash-back to policyholders that have continuously renewed their policies but didn’t have course to make claims for many years of premium payment on their policy.
David said that before now, the challenge of insurance was low awareness. He called on underwriters to also increase their product visibility and awareness such that Nigerians are better informed on what could benefit them.
He urged businesses to insure their shops and offices through theft and burglary insurance, among others.
According to him, the risk mitigation mechanism will ensure that goods in their shops and offices are protected and that the insured suffer no financial loss when disaster strikes.
One of the journalists, who led the group, Chuks Okonta, said the purpose of the visit was to feel the pulse of traders on their perception of insurance products and services so that their responses could assist the insurance industry to adjust their services in the area they are not doing well.
As developmental journalist, he said the group hopes to continue to engage insurance policyholders and prospects to enhance insurance education and awareness.
He added that when more people are educated on the nitty-gritty of insurance, there were a high chance that they would subscribe to insurance products and services, hence, deepening adoption in the country.
