Stakeholders Charge Insurers, Pension Operators To Put Customers First

Stakeholders in the insurance and pension sectors have charged operators to channel funds raised through recapitalisation into improved services, innovative products and initiatives that will strengthen customer confidence.

They made the call on Thursday in Lagos during a panel discussion at the 11th Annual Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE).

The conference, themed “Post-Recapitalisation Market Dynamics in Insurance and Pension Sectors,” examined how operators could translate stronger capital bases into tangible benefits for policyholders, pension contributors and the wider economy.

The panellists stressed that the success of recapitalisation should be measured not by the amount of capital raised but by its impact on service delivery, investment returns, financial security and customer satisfaction.

Speaking on the insurance sector, the Managing Director of SanlamAllianz General Insurance, Mrs Jacqueline Agweh, said the post-recapitalisation era presented an opportunity for insurers to develop products tailored to customers’ specific needs.

She said operators must engage more closely with customers to understand their needs and provide appropriate products and services.

Agweh identified innovation, digital transformation, user-friendly technology and self-service platforms as critical tools for improving customer experience and expanding insurance penetration.

She urged insurers to simplify onboarding processes and deploy technology to enhance risk assessment, claims investigation and other operational activities.

The SanlamAllianz chief executive also called for greater attention to retail insurance and microinsurance, noting that affordability and simplicity were essential to attracting more Nigerians into the insurance market.

“Bulky policy documents and complicated terms often discourage people from taking insurance products,” she said, adding that insurers needed to make their systems seamless and provide digital platforms through which customers could access services conveniently.

Agweh further advocated embedding insurance into everyday economic activities to make protection more accessible to consumers.

“Why can’t my phone be insured from the point of purchase? Why can’t you bring it in? Sometimes it is so subtle, you don’t even see that they pay for insurance,” she said.

She added that insurers should focus on building an insurance culture by developing products that are accessible, affordable and relevant to Nigerians.

Also speaking, the Executive Director of NLPC Pensions, Mr Babalola Rufus, urged operators to ensure that policyholders and Retirement Savings Account (RSA) holders had their funds protected, prudently invested and paid when due.

Rufus noted that shareholders and contributors had committed funds to the insurance and pension sectors with the expectation of receiving value from their investments and contributions.

According to him, recapitalisation should produce stronger institutions, better investment decisions, improved services, wider participation and greater accountability.

He said the ultimate measure of the exercise would be the benefits delivered to customers rather than the additional capital mobilised by operators.

Similarly, the Managing Director of Zenith Pensions Custodian Ltd., 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 firm’s Head of Safekeeping and Corporate Action, Mr Alfred Nkuma, also emphasised the need for investment in human capital to equip employees with the skills required to drive technological transformation.

He said recapitalisation should not be regarded merely as a regulatory compliance exercise but as a strategic opportunity to build resilient institutions capable of delivering long-term value.

Nkuma said the industry’s focus should now shift from the amount of capital raised to how effectively the additional funds were deployed to address operational challenges and improve outcomes for customers.

He added that pension fund custodians had a responsibility to safeguard pension assets, diversify investments and maintain sufficient liquidity to meet beneficiaries’ obligations.

According to him, trust and confidence remain critical to sustaining contributions to the pension system.

He assured Nigerians that pension fund custodians would continue to prioritise the safety, availability and growth of assets belonging to Nigerian workers.

Earlier, the Chairman of NAIPE, Mrs Ebere Nwoji, said the conference was organised to bring together regulators, industry operators and investment experts to examine how insurance and pension institutions could prudently deploy the capital raised through recapitalisation.

Nwoji said effective investment of the funds would help generate sustainable returns, strengthen the economy and improve the long-term financial security of Nigerians.

She commended the Commissioner for Insurance, Mr Olusegun Omosehin, for overseeing the successful completion of the insurance industry’s recapitalisation exercise, following several unsuccessful attempts by previous administrations to strengthen operators’ capital bases.

According to her, the exercise had brought an end to years of uncertainty surrounding efforts to improve the industry’s financial capacity.

Nwoji congratulated the 50 insurance and reinsurance institutions that met the recapitalisation requirements, expressing optimism that the exercise would improve their business prospects.

She urged operators that failed to meet the requirements to accept the outcome and avoid actions capable of creating uncertainty in the market.

The NAIPE chairman also encouraged Nigerians to take advantage of the industry’s improved financial capacity by purchasing insurance policies.

She appealed to Omosehin not to be distracted by criticism from some industry stakeholders, maintaining that recapitalisation was necessary to strengthen the sector.

Nwoji said the association would intensify efforts to educate Nigerians and the international community on the importance of insurance and pensions as long-term savings mechanisms and safeguards against unforeseen financial difficulties.

On the pension sector, she expressed confidence that the ongoing recapitalisation exercise would strengthen pension fund administrators (PFAs) and improve retirement outcomes for Nigerian workers.

She urged PFAs to use the time available to meet the revised capital requirements ahead of the July 2027 deadline.

According to her, operators that might be unable to meet the requirements independently should begin discussions on possible mergers early to ensure business continuity.

Nwoji also commended the Director-General of the National Pension Commission (PenCom) for the reform initiatives being pursued under the Pension Revolution 2.0 programme.

She said the reforms had the potential to improve retirees’ welfare and reduce the risk of poverty in old age.