The Group Chief Executive Officer, Old Mutual West Africa, Mr. Zomunoda Chizura, has said that making insurance compulsory through regulation will not encourage more Nigerians to embrace it.
Chizura explained that Nigerians’ interest in insurance could only increase with attractive programmes, solutions and visible benefits that could be seen across generations.
Speaking during a customers’ forum organised by his organisation in Port Harcourt, Chizura stated that forcing people to embrace insurance would not be sustainable.
He observed that unlike in South Africa, insurance patronage in West Africa was low due to ignorance.
Chizura stated, “We think the penetration of insurance in West Africa is lower compared to other economies. It (insurance) has to be left to willingness. It is less than one per cent in Ghana and in Nigeria, compared with other countries such as South Africa, where the penetration is more than 15 per cent.
“Regulations may help, but in our company, we believe in solutions that attract people. Even before people are forced, they will see the benefits for themselves.
“For instance, if they see across generations that insurance can help, they will join. If my children see that insurance helped me, they will take up insurance. The solution is in talking to customers than compulsory insurance.”
Explaining that Old Mutual was present in 13 African countries, the Group CEO explained that the firm had made it compulsory to always give customers correct information and advice.