Stakeholders in Nigeria’s insurance and pension industries have called on operators to channel funds raised through recapitalisation into better customer services, innovative products and stronger public confidence in the sectors.
They made the call at the 11th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE), held in Lagos, where industry experts examined the implications of recapitalisation for insurance companies, pension administrators and the wider economy.
The conference, themed “Post-Recapitalisation Market Dynamics in Insurance and Pension Sectors,” emphasised that the success of recapitalisation should not be measured solely by the volume of capital raised but by the tangible benefits delivered to policyholders, pension contributors and the economy.
Speaking on the insurance sector, Managing Director of SanlamAllianz General Insurance, Mrs Jacqueline Agweh, said the recapitalisation exercise had created an opportunity for insurers to develop products that respond more effectively to customers’ needs.
Agweh said insurance companies should engage more closely with customers to understand their circumstances and provide tailored services.
She identified innovation, digital transformation, user-friendly technology and self-service platforms as essential tools for improving customer experience.
According to her, insurers should simplify customer registration and onboarding processes while deploying technology to strengthen risk assessment, claims investigation and other operations.
She also called for greater investment in retail and micro-insurance, noting that affordability and simplicity remained critical to expanding insurance coverage in Nigeria.
Agweh said complicated policy terms and lengthy documents often discouraged prospective customers from purchasing insurance products.
“Bulky policy documents and complicated terms often discourage people from taking insurance products. Insurers must make their systems seamless and develop digital platforms that would enable customers to access insurance services conveniently,” she said.
She further advocated integrating insurance into everyday economic activities to make coverage more accessible and encourage Nigerians to embrace it as part of their daily lives.
Using mobile phones as an example, Agweh questioned why insurance could not be offered seamlessly at the point of purchase.
She maintained that insurers should use the post-recapitalisation period to build a culture of insurance through products that are affordable, accessible and relevant to consumers.
Also speaking, Executive Director of NLPC Pensions, Mr Babalola Rufus, urged operators to ensure that policyholders and Retirement Savings Account (RSA) holders had their funds adequately protected, prudently invested and paid when due.
Rufus said shareholders and pension contributors had committed funds to the sectors with the expectation of receiving value, adding that recapitalisation must translate into stronger institutions and improved service delivery.
He said the exercise should produce better investment decisions, wider participation, improved accountability and stronger confidence among customers.
Similarly, Managing Director of Zenith Pensions Custodian Limited, Mr Peters Elendu, called on pension operators to invest in technology, artificial intelligence, data analytics and innovation to make pension services more efficient and accessible.
Elendu, who was represented by the company’s Head of Safekeeping and Corporate Action, Mr Alfred Nkuma, stressed the need to invest in human capital to equip employees with the skills required to support technological transformation.
He said recapitalisation should be treated as a strategic opportunity to build resilient institutions rather than merely a regulatory compliance exercise.
According to him, operators must now demonstrate how the additional capital would be deployed to address industry challenges and generate sustainable long-term value.
Nkuma said pension fund custodians also had a responsibility to safeguard pension assets, diversify investments and maintain sufficient liquidity to meet beneficiaries’ obligations.
He added that trust and confidence remained essential to sustaining contributions to the pension system, assuring that custodians would continue to prioritise the safety, availability and growth of Nigerian workers’ pension assets.
Earlier, NAIPE Chairman, Mrs Ebere Nwoji, said the conference was organised to bring together regulators, industry operators and investment experts to discuss prudent ways of deploying capital raised by insurance and pension institutions.
Nwoji said effective investment of the funds could generate sustainable returns, strengthen the economy and improve Nigerians’ long-term financial security.
She commended the Commissioner for Insurance, Mr Olusegun Omosehin, for overseeing the successful completion of the insurance industry’s recapitalisation exercise after several unsuccessful attempts by previous administrations.
According to her, the exercise had brought an end to years of uncertainty surrounding efforts to strengthen the industry’s capital base.
She urged Nigerians to take advantage of the improved financial capacity of insurance companies by purchasing policies to protect themselves against financial risks.
