Insurance Firms Partner Banks On Sale Of Products

Experts at the capital market have identified prospects on strategies adopted by insurance companies to use bank sales channels for the promotion and sales of their products.

This they said it would lead to increase in the insurance sector turnover and profitability.

Mr. David O. Adefolaju a broker with Resort Securities & Trust Limited said that it is a good leverage for the insurance sector to capitalise on the banking network nationwide as it will give them adequate exposure to reach the grassroots of the society to buy into insurance policy.

He citied an example of Niger Insurance which has a partnership with Afribank Nigeria Plc with a network of over 350 branches.

Speaking on the development, an operator pointed out that it is a good omen for the insurance companies, adding that awareness would be created through the marketing strategy and also confidence which had been eroded in the Insurance sector would be restored.

He noted that the recent Mou which allows the banks to partner with Insurance companies would bring customers confidence into the Insurance sub-sector.

The National Chairman of Progressive shareholders Association of Nigeria, Mr. Boniface E. Okezie stated that most of the Insurance companies are subsidiaries of banks, stating that the best platform for insurance to market their products is the banking networks all over. The country and abroad.

He said the banks should ensure that their customers are being channeled to their Insurance subsidiaries. “I don’t see why law Union & Rock Insurance Plc is performing below expectation having Sky bank as its parent body,” he said.