By An insurtech company, Cube Cover with the support from some technology and telecoms company has launched an a solution that will leapfrog the insurance market in Nigeria into a new frontier through the help of mobile platform technology.
Unveiling the new insurtech mobile platform in Lagos, Southwest Nigeria, the Co-founder and Chief Executive Officer of Cube Cover, Mr Deji Macauley said that his company is business bring more Nigerians into the insurance sector saying that less than three percent of Nigerians own an insurance policy.
According to him, Cube Cover is an integrated brand designed through a .17 years experience, and that it is building technology and telecommunications together with healthcare to drive the insurance market adding that it worked with its partners: MTN Nigerian, Globacom, Airtel Nigeria, PalmPay and AXA Mansard Insurance to make the dream come true.
“Over time, we’ve planned to take-off as a telecoms and healthcare company, and we came up with solutions to drive protections for Nigeria. Even though today is the launch of the Cube Cover brand, this project, we’ve been working on it for over a year. We’ve been looking at how we can make insurance easier for people to acquire and use insurance policy”, he said.
He said that it is the expectation of his team that Cube Cover collaboration will be able to bring effective change in Nigeria, increase protection, make insurance simpler, more affordable, more trustworthy.
He said the innovative insurance product was designed to bridge the market gap saying the company’s product is designed to make insurance more flexible, accessible, and affordable for customers.
“We are targeting everybody that doesn’t have insurance. We are providing insurance across the entire spectrum, including SMEs, people in informal jobs, and traders. We are leveraging technology and partnerships to increase penetration, particularly among low-income earners,” he said.
In a presentation, “Expanding Insurance Accessibility Through Mobile Platform”, Chief Technical Officer, Mr Samuel Ishie, said that the Nigeria’s insurance industry faces a daunting challenge, with only three per cent of its population insured.
He disclosed that in a study conducted by Cube Cover, the company found out that 218 million Nigerians vulnerable to financial shocks adding that the industry is grappling with low awareness, trust deficit, and entry barriers, including affordability and accessibility.
“Low awareness is a major challenge, people don’t understand the benefits of insurance, and even if they do, they don’t know how to access it. Many Nigerians cannot afford insurance premiums, and even if they can, they may not have access to insurance products.”
He added that “A market survey showed that 86 per cent of respondents preferred an insurance company paying for their bills, while 91 per cent paid out-of-pocket for medical expenses.
Ishie noted that the survey also highlighted a trust deficit, with many respondents expressing scepticism about the ability of insurance companies to pay claims.
Also, Elfrieda Ezenagu, the Company’s Service Delivery Manager, said Cube Cover had partnered with mobile networks, fintechs and health providers, including MTN, GLO, Airtel and Palmpay to make their product more accessible to customers.
Ezenagu also noted that the company plans to expand its services to government workers through the National Health Insurance Authority (NHIA).
According to Ezenagu, the prices for the insurance plans start from as low as N100, making it an affordable option for Nigerians.
Speaking during a panel discussion, Aisha Mumuni, the Chief Digital Officer at MTN highlighted the role of telecommunication companies in shaping the future of insurance distribution, citing Nigeria’s 27 per cent mobile penetration rate and 210 million mobile connections.
Mumuni emphasised the importance of increasing insurance penetration, noting that telecommunication companies have the infrastructure and expertise to reach the public.
She noted that MTN had partnered with companies like Cube Cover to provide insurance services to its customers.
Similarly, Habib Kowontan, Group Head, Wealth Products at Palmpay, a fintech company, emphasised the importance of partnerships in increasing insurance penetration, noting that Palmpay had served various insurtech companies.
Also, Jumoke Odunlami, Chief Distribution Officer, AXA Mansard, stressed the importance of awareness and education in increasing insurance penetration.
