Addis Ababa (May 2017) – Nyala Insurance S.C (NISCO) disclosed that it, despite multiple challenges, showed remarkable achievements in amassing significant amount of premiums through enhanced service excellence in the past nine months of the current fiscal year.
Yared Mola, Chief Executive Officer of NISCO, making an opening remark
Minassie Taddese, Member of the Board of Directors, officially opening the workshop
The nine month operational performance report presented by Abiy Worede, Strategy & Change Management Manager, on NISCO’s 35th strategic and operational Performance Evaluations (PEs) workshop, carried out from 8th -10th May 2017 at Azzeman Hotel here in Addis, indicated that that NISCO was able to collect about Birr 371 million from both long-term and non-life insurance businesses, a 13% growth compared with the previous same period.
On the other hand, Yared Mola, Chief Executive Officer of Nyala Insurance S.C, underscored in his “Breathing Life into Life: Reviving Long Term Insurance Business in Ethiopia” thematic presentation that life insurance in Ethiopia is at the lowest penetration level compared to the other African nations.
Yared quoted as a case that the share of life insurance in Kenya is 36.2 % while that of Ethiopian is only 5.5%, implying the business is still suffering from lack of due attention from the role players and other stakeholders.
According to CEO’s presentation, the major contributing factors for the least penetration rates are low level of awareness, economic and cultural barriers, weak partnership among stakeholders, over concentration on the general insurance and lack of resources for the business.
Participants of the 35th Workshop (partial view), at the end of the workshop
To that end, effective awareness programs, simplicity of life insurance products, products expansion to cover other needs, improved incentives, effective utilization of information technology, introduction of innovative products, and regulatory supports are the key remedial measures to improve the businesses, Yared added.
Other issues of the Workshop:
- Training on Performance Management System:
By carefully reviewing its current performance evaluation system, NISCO is on the way to implement a new practical performance management system that objectively aligns with its five-year corporate strategic plan. To this end, a half-day long training was given to the workshop participants to create common grounds through introducing the theoretical concepts of the system.
- Syndicate Group Discussion and presentation:
Three thematic topics, namely:
- Deepening Life Insurance business in Ethiopia: Challenges and Prospects
- Designing and Underwriting Best Life Insurance Package for NISCOnians, and
- Assessing the need to embark into new and practical performance appraisal system
were brought to the participants’ views to jointly look into and argue in three groups. Accordingly, intensely discussing and identifying major challenges on the respective topics, each group presented their findings accompanied by projected solutions to the participants for further discussions and way forwards.
- Desk Services:
At the final day of the workshop, the executive management members of the company (including CEO) took a separate seat to personally listen, respond or react to potential complaints and grievances raised by the respective service centers and departments. NISCO believes this way of interaction with the executives is best approach to address challenges of all service centers, divisions and departments at one spot.
Finally, within the frame of CEO’s thematic presentation and syndicate group discussion, the 35th PE’s workshop participants have gained common understandings on the challenges and prospects of life insurance in Ethiopia and, passed the following resolutions:
- Provide life insurance trainings to staff and intermediaries and encourage life insurance related certifications
- Revise/increase intermediaries commission fee on selected life insurance products
- Introduce a new performance reward system on the basis of the new performance management system
- Increase market share of the company by adding more values to customers, by enhancing customer relations, by focusing on product differentiations and innovations
- Reduce inefficiencies and irregularities in operations