Insurance: Trust Deficit High among Industry workers…Research

• Only 47% actually own voluntary insurance

The weakening confidence and low penetration of the sector in the Nigerian market, may have been further strengthened by the near lack of confidence in the sector as demonstrated by insurance marketers.

EFINA in its report titled “150 insurance insiders reveal while the Nigerian insurance system is broken” revealed that the people who know insurance best aren’t buying it.

The report and what should be done was arrived at through findings in research which EFINA recently conducted with 150 insurance professionals, analysts, executives, contract staff, and senior leaders at three major Nigerian insurers. These individuals, according to the report, have insider knowledge, employee dis- counts, and daily exposure to how coverage works.

However, irrespective of their knowledge and exposure to the sector, their commitment to buying and keeping insurance policies, contradicted their steady campaigns to boost the sector’s penetration, thereby leaving a doubt on what should be expected of people who lacks basic knowledge of the sector, and the ability to convince them to buy non-compulsory or regulated insurance products.

EFINA said “Our findings reveal a critical gap”. The findings shows that while 96 per cent of the people interviewed believe insurance provides valuable financial protection, however, below 50 per cent, precisely only 47 per cent actually own voluntary insurance.

The breakdown of EFINA research findings show that, 1 in 3 of the industry workers has never purchased coverage, and that 19 per cent of them who purchased policies, have dropped out entirely.

According to the findings, only 36 per cent of the people interviewed feel confident navigating insurance processes, even though they work in the industry.

If insurance professionals struggle to buy and maintain coverage, what does that mean for everyday Nigerians? This study shows us that Nigeria’s insurance challenge isn’t awareness. It’s accessibility, affordability, and trust.

According to EFINA, “Our new Consumer Market Insight Report uncovers why belief doesn’t translate to action, where the system breaks down, and what insurers, regulators, and policymakers must change”