Insurance experts in the South-East zone have urged Nigerians to take advantage of insurance to reduce business losses and exposure to risks.

They made the call in separate interviews on why many Nigerians shun insurance policy.

Branch Manager of the Nigerian Agricultural Insurance Corporation in Enugu State, Andrew Uzomah, said that insurance had capacity to reduce business losses especially those that deal with natural disasters.

According to him, the current effect of climate change such as inadequate rainfall, flooding and massive pest/disease infestation leading to poor yield in agricultural farmlands has made taking up insurance policies imperative for farmers.

He said, “The effect of climate change remains highly evident in the agricultural sector especially in farmlands and farmers need somewhere or financial indemnity to rest on if the climatic conditions does not favour their farming businesses. It is unsafe for any farmer to consider planting and going into other agricultural value chain production in a massive scale without securing an insurance policy against climatic and situational changes leading to devastating losses.’’

On why Nigerians are not eager to take up insurance policies against losses, Mr Uzomah attributed it to ignorance and negative orientation about insurance.

The branch manager said that without any personal experience on how insurance works, some Nigerians had already concluded with the negative stereotype that insurance companies cannot be trusted for claims.

“This is not true. We have trustworthy insurance companies that stand by their words and pay their claims as expected without bringing in clauses that lead to bad faith in the initial policy agreement,” he said.

Corroborating, the Head, National Insurance Commission, South-East Zonal Office, Cliff Chukwuani, noted that Nigerians shy away from taking up insurance policy due to poor awareness and alleged rumoured infidelity on part of few insurance companies.

Mr Chukwuani said that NAICOM and other operators were already working on the two perceived lapses and “soon we will overcome these challenges in the industry to make Nigerians patronise the industry.

“Shortcomings in terms of infidelity from the operators are not helping insurance to grow. However, NAICOM is upping its game in its regulations to ensure all operators are living up to their expectations. On regulation, NAICOM has been doing a lot. When the issues affecting the industry are holistically addressed, there will be a turnaround for insurance business in Nigeria to boom like the banking sector,” he said.

He added that Nigerians could benefit from National Insurance Policy and get insurance cover against ill health, loss of shelter, flood destruction of farmlands and business premises, fire outbreak and other forms of devastation that affect them.

Contributing, Senior Lecturer at the Department of Psychology, University of Nigeria, Nsukka, Dr Aaron Agbo, noted that the poor value system was responsible for people’s lack of interest in taking up insurance policies.

Mr Agbo said that the “psychology of people in any society is controlled by the values of what is in that society.”

According to him, the inability of any government to place serious values on protection of lives and property, made many to see insurance policies to protect their lives and property as waste of money since the government cannot do it.

The lecturer said, “People are doing everything in the country now to get money because that is what society placed much value on. In developed countries, people take up insurance policies for their lives and property because the government placed much value on protection of lives and property of citizens.”

The don noted that since many people could not trust those in government, they also have doubt on the ability of insurance companies to mitigate their suffering when they have problems.

Speaking, former Chairman of Ogige Market Amalgamated Traders Association Nsukka, Festus Onogwu, said why many traders develop apathy in taking up insurance policy was because traders believe in cash and carry business.

“What every trader is looking for is money he/she will invest to grow his/her business and will see the gain in no distant time and not the one you wait till a day of uncertainty, which may not happen,” Mr Onogwu said.

The former OMATAN boss, however, alleged that even some traders who insured their vehicles, and in the course of accidents, took a long time before they get compensation from their insurance companies.

“Many traders see insurance companies as not trustworthy to come to their rescue in case of any eventuality. It is only when you trust a system that you can rely on it for protection in case of any problem,” he said. 

(NAN)