The Managing Director, Risk Analyst Insurance Brokers Limited, Funmi Babington-Ashaye, has urged insurance operators and brokers to leverage the numerous opportunities in the emerging markets to improve their fortunes and enhance the industry’s capacity.
Babington-Ashaye said this while speaking on ‘Emerging markets and opportunities in the insurance industry’ at the 2021 mid-year workshop organised by the Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers.
A statement on Sunday said that while delivering her presentation virtually, Babington-Ashaye defined emerging market as a market that had some characteristics of a developed market, but did not fully meet its standards.
She said an emerging market economy was considered to be progressing towards becoming a developed market.
According to her, emerging markets comprised of developing nations which were becoming more engaged with markets as they grew; transiting from low per capita income and with insignificant industrial activities towards a modern, industrial economy with a higher standard of living.
In these markets, she said, insurers capitalised on increased wealth in the middle class, a low rate of penetration of insurance products and services, and even government support to introduce insurance products to people in rural areas.
She expressed optimism that the current growth momentum was expected to continue in the future as more distribution channels were being explored with increased use of information technology tools for back-end operations as well as for sales services to reach out to the customers.
Babington-Ashaye called on underwriters and brokers to take advantage of emerging markets opportunities by focusing on key drivers such as financial services, customer segmentation, consumer needs, technology, business models, and transformational changes.
She said, “A few are making the transformational changes needed to drive demand for their products and services. As brokers/insurers, the need for us to focus on technology, reviewing our business models and making transformational changes cannot be over-emphasised.”
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