Zenith Life, FBN Insurance best life, general insurers at 2020 global award
By Asishana John
Zenith Insurance and FBN Insurance have emerged Nigeria’s best general and life insurance provider in the 2020 World Finance Insurance Award which identifed insurance firms with the greatest stamina to withstand the year’s crises through utilizing various digital approaches.
The annual award recognises insurers that adapt and evolve to keep pace with changing consumer demands. Many of the companies that made the list are those that adopted artifcial intelligence (AI), Internet of things solutions and several other new technologies during the COVID-19 induced lockdown to deliver faster and more reliable services.
The year 2020 award saw FBN Insurance, a general risk underwriter, and Zenith Life, a life insurer, emerge at the forefront of insurance firms with technology innovation during the pandemic. The global award for FBN marked the fifth since the inception of the award in 2007 as the firm, prior to 2020, has brought home the glory in 2014, 2016 and 2017, 2019.
Before the pandemic, the insurance industry was crawling towards a digital first model for years, but the COVID-19 pandemic has accelerated these efforts and brought online services into focus.
During the year in review, there were numerous challenges posed by COVID-19 pandemic which drove insurance firms to increase frequency of working from home, economic malaise as well as the prolonged pressure of minimal interest rates which changed the directives for how many insurance companies’ work.
The pandemic presented several quandaries for the insurance industry, part of which was the surge in claims, most commonly within the health,travel and business sectors. This led to a decline in the sales of these products due to travel bans and restrictions that contributed an additional layer of pressure.
Meanwhile, COVID-19 made it possible for insurers to improve their customer services, particularly in the digital space. Online services are being embraced massively as it allows people feel comfortable interacting with companies. Also, with digital channels now an absolute necessity, people are also changing the way they shop for insurance.
T h e p a n d e m i c h a s changed both the products and services offering throughout the insurance sector. On the product side, people enduring greater financial stress are reassessing their ongoing expenses as well as reflecting on what is really valuable to them hence, people are discovering unexpected benefits in their products, as well as unnecessary expenses.
In addition, COVID-19 is contributing to a change in product preference among insurance customers alongside new channels. Recent reports have shown that insurers now believe that 62 percent of consumers regard non-insurance products as the most important factor when choosing an insurer.
This is particularly true for the health sector in terms of internet-connected devices. Items such as smart watches and wristbands are a common gift with new policies, providing potential health benefits to the customer.
Other insurance sectors as well are beginning to adopt similar techniques. Car insurers can now install driver monitoring software to help people correct poor driving habits that if ordinarily is left unchecked may increase the chances of having an accident.
Also, Cyber insurers provide dedicated training and guidance to companies to help them avoid a cyberattack, as well as providing support in the event of attacks. These kinds of products are targeted at the essence of products; People buy insurance to be safe and protected in times of crisis.
Importantly, insurers have gone beyond just financially supporting victims in the event of a disaster or emergency. Having access to the data that these kinds of add-on services provide, and the power that accompanies it, put insurers under a tremendous amount of scrutiny.
