Major Challenges Facing Insurance Companies in Nigeria 2020 See Update
Major Challenges Facing Insurance Companies in Nigeria 2020 See Update.
Challenges Facing Insurance Companies: Insurance Companies provide coverage in the form of compensation due to financial loss, damages, injury, treatment, or hardship.
The insurance companies in Nigeria are facing lots of challenges and this has affected the growth and popularity of insurance. Below are some of the major challenges insurance companies are facing in Nigeria:
Lack of skilled personnel:
Many insurance companies in Nigeria lack skilled personnel due to the fact that the salary is unattractive for a skilled professional and the discontinuation of seminars and programs meant to train the employees.
The insurance companies are not able to meet up with cooperating objectives, due to the unavailability of skilled personnel.
Lack of Information Technology (IT) Infrastructure:
Most insurance companies in Nigeria have not upgraded from the manual system of operation, which is the reason for poor documentation system which has led to fraudulent practices, delays in service, errors, and mistakes.
This is why the statistics of insurance companies are not always ready on time and the Nigerian insurance industry regulatory body (NAICOM) has failed to enforce that all insurance companies adopt the use of automated systems.
Poor Risk Management:
The insurance companies lack plans on how to manage risks associated with the company. Another reason for the poor management system is the low level of implementation of NAICOM’s Enterprise Risk Management framework because of inadequate capital, lack of Information Technology (IT) facilities.
Poor Market Concentration:
The insurance company is not popular among the people. It is only a few who know and understand the need for an insurance company and due to this fact; the company has limited contribution to the country’s GDP.
Few other reasons why the insurance companies are not known because of no advertisement, unattractive packages, and increased poverty rate.
Lack of Innovation:
The insurance companies are unable to develop products that meet and satisfy the customer’s needs. Also, the process of obtaining approval for the development of hinders innovation.
Poor Patronage:
The insurance companies are not popular among the masses and it is misunderstood because of a lack of trust, which is the basis for a social-business relationship.
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CSN Team.
