NAICOM believes that increased awareness will attract traders to insurance policies, ultimately driving penetration. However, industry experts argue that past awareness campaigns have failed to yield tangible results because they lack two critical elements:
- Demonstrating Profitability – Traders are business-oriented and will only embrace insurance if it helps them generate more income or minimize financial losses in a way that increases their earnings.
- Sustained Engagement & Follow-Up – A single awareness campaign without continuous follow-up will not lead to adoption. Experts emphasize the need for insurers to revisit traders, provide tailored solutions, and ensure practical implementation.
Case Studies: Lessons from the Past
- Failure of Past Campaigns: Several insurance sensitization programs have been held in Nigerian markets over the years, but penetration remains stagnant because traders do not see direct financial benefits.
- Success in Other Sectors: Mobile banking adoption among market traders only surged when financial institutions demonstrated clear earning opportunities, such as microloans and cashback incentives. A similar approach is needed in insurance.
A Call for a New Strategy
Experts insist that unless NAICOM shifts from traditional awareness models and incorporates profit-driven benefits and continuous engagement, insurance will remain an abstract concept to market traders.
The question remains: Will NAICOM and insurers adapt their strategy to reflect these realities, or will this campaign join the list of initiatives that failed to drive real insurance penetration?
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