Like every other industry in Nigeria, the insurance industry is growing to become more competitive by day. Particularly, the Health Insurance Companies are faced with major issues that have been growing with the industry for quite a while and are now too big to ignore.
Here some of the most daring problems are discussed below:
- Lack of growth in the customer base. The major source of income for most insurance companies is the wide chain of customers they build. This has changed over the years and as a result, there is a stunted growth in the business. This could be due to a lack of innovation to keep the growth steady, but a new development in the industry is set to solve the problem. Platforms like HealthKonnet are going digital with Health Insurance, giving Insurance stakeholders the chance to grow their customer base the 21st century way.
- Inability to make effective decisions. Agreement with insurance companies is basically about bearing risks. For example, the cost to maintain cancer for a month has risen from about $5000 to $10000 over the past few years. The growth in premiums have helped balanced this to an extent but the truth remains that these margins will continue to decline while insurers watch the margins.
- Incapability to avoid huge health bills for patients. It has been proven by experience and testimony that patients don’t trust their insurers to make the best decisions for them, this is because they are not guaranteed of the quality of the result of such decision. As a result of this, they end up making unprofessional decisions that cause them to pay more than they should. However, a significant development in the industry is transparency and reduced costs. For example, HealthKonnet is particularly established to make sure patients spend less and get more.
- Restrained turnover. Most insurers have the issue of making little or no profit on the various investments they make and this in the real sense is not a good deal in business. If only they could use a platform that would guarantee customer growth and ensure a profitable and growing turnover.
- Sustaining favorable and lasting relationship with clients. The managerial ability of an insurance firm has a long way to determine it’s an achievement in the long-run. Poor management and lack of human resources can, however, be a major set back to such headway for any insurance company.
- Lack of demand. On a regular, new innovations spring up in the business world and therefore, it becomes necessary to adjust and find creative ways to fit into the trend and make the best of it, this can be achieved by constant promotion and awareness.
- Technological Revolution. Technology expands on a daily and the more the expansion, the more expensive they get, the inability of some companies to afford or accept these enhancements draws them back and basically, investments increase.
Many insurance companies are failing because they are still operating in the past. However, a few of them are thriving because they have opened themselves to innovations such as HealthKonnet, improving the quality of their services, and making their day to day operations cheaper and easier.