A report by Cubecover, an Insurtech agency, has revealed a number of elements driving Nigerians away from insurance coverage even because it highlighted that solely about 3% of Nigerians have insurance coverage protection as of 2024.
Co-founder and Technical Officer of the corporate, Samuel Ishie, introduced findings of the Cubecover survey throughout the firm’s model inauguration in Lagos.
In keeping with him, a number of elements together with excessive value, have contributed to the apathy of Nigerians in the direction of insurance coverage.
“Low consciousness is a serious problem, individuals don’t perceive the advantages of insurance coverage, and even when they do, they don’t know the best way to entry it.
“One other issue is that many Nigerians can’t afford insurance coverage premiums, and even when they’ll, they could not have entry to insurance coverage merchandise,” Ishie mentioned.
Belief deficit
Ishie famous that the survey additionally highlighted a belief deficit, with many respondents expressing skepticism concerning the skill of insurance coverage firms to pay claims.
“We found that much more individuals need insurance coverage, they need the safety, however there are a number of boundaries for them to get that safety. So a part of what we began engaged on was eradicating these boundaries,” he mentioned.
- To deal with these challenges, CEO of Cubecover, Deji Macaulay, mentioned the corporate has partnered with cellular networks, fintechs, and well being suppliers, together with MTN, Glo, Airtel, and Palmpay to make insurance coverage merchandise extra accessible to Nigerians.
- He mentioned the corporate plans to broaden this to authorities employees by the Nationwide Well being Insurance coverage Authority (NHIA).
Position of telecom in insurance coverage
Talking throughout the occasion, Chief Digital Officer at MTN, Aisha Mumuni, highlighted the position of telecommunication firms in shaping the way forward for insurance coverage distribution, citing Nigeria’s cellular penetration charge and the over 150 million energetic cellular connections as alternatives.
- Mumuni emphasised the significance of accelerating insurance coverage penetration, noting that telecommunication firms have the infrastructure and experience to achieve the general public.
- She famous that MTN had partnered with firms like Cubecover to supply insurance coverage companies to its prospects.
What you must know
Whereas common insurance coverage has been at its lowest ebb in Nigeria, a brand new public opinion ballot performed by NOIPolls revealed that solely a 19% of grownup Nigerians are lined by medical health insurance insurance policies within the nation.
“Sadly, most grownup Nigerians (79%) aren’t lined by the scheme as they pay out of pocket for healthcare,” the report acknowledged.
This corroborates Dataphyte’s publication of December 24, 2021, which experiences that Medical insurance has barely scratched the floor in Nigeria as regards to proportion protection of the inhabitants as 97% of Nigeria’s inhabitants just isn’t lined by any medical health insurance; the choice to medical health insurance is big out-of-pocket spending on well being.
In 2018, Nigeria ranked the third highest nation with the best out-of-pocket well being spending as 76.6% of well being spending within the nation was out-of-pocket.
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