Nigeria: Launch of a new mobile insurance product expected to boost sector's penetration

May 12, 2014

FBN Insurance Limited and mobile operator Etisalat Nigeria have announced the launch of an insurance product accessible via mobile phone.

FBN Insurance Limited and mobile operator Etisalat Nigeria have announced the launch of an insurance product accessible via mobile phone.

The product, called 'Sure4Life", is expected to provide products such as life insurance or medical cover to many uninsured Nigerian people.

Speaking at the launch in Lagos, FBN Insurance's Managing Director, Val Ojumah, said the initiative supports the company's aspiration to bring the benefits of insurance to Nigerians who otherwise would have remained uninsured, Daily Independent reports.

According to FBN figures, life assurance has a penetration rate of only 0.5 per cent in Nigeria, while general insurance has just about 1.5 per cent penetration.

A recent Industry research report by Vetiva Capital Management published by the Premium Times stated that insurers could help provide long term financing, adding that insurance was expected to broaden the domestic financial services universe and generate higher savings rates, as well as greater economic development.

“We believe that the Insurance sector is critical to the ability of emerging and transitional economies like Nigeria to grow and provide a reliable cover for risk to the citizens. Insurance provides stability by allowing large and small businesses operate with a lesser risk of volatility or failure,” according to the report.