Heirs Insurance: Building Trust, Championing Financial Inclusion

Oluchi Chibuzor  writes on how the Heirs Insurance Group is deepening insurance penetration in Nigeria through technology and innovation

Nigeria, a burgeoning economy in Africa, has witnessed significant strides in various sectors. However, the insurance industry remains relatively underdeveloped, hindering its potential to provide financial security and support economic growth. 

Factors such as limited financial literacy and misconceptions about insurance products; certain cultural and religious beliefs; low-income levels and economic instability limit the ability of individuals and businesses to afford insurance premium and contribute to low penetration rates in the country.

That is why the Heirs Insurance Group (HIG), a subsidiary of the renowned Heirs Holdings,  a pan-African investment company, with investments across 24 countries and four continents, founded and led by Mr. Tony Elumelu, have since its creation three years ago, continued to champion the growth of insurance adoption.

The HIG clearly understands that having a virile insurance is good for any economy. Insurance provides a safety net against unforeseen events such as accidents, illnesses, and property damage, safeguarding individuals and businesses from financial losses. A well-developed insurance sector can contribute to economic stability by mitigating risks and facilitating investment. Insurance enables effective risk management, allowing individuals and businesses to plan for potential losses and protect their assets. Increased insurance penetration can create employment opportunities in the insurance industry and related sectors.

HIG has rapidly emerged as a prominent player in Nigeria’s insurance landscape to change the narrative. With a commitment to delivering exceptional service and innovative solutions, the company has built a strong reputation for trust and reliability.

With a rapidly expanding retail footprint and an omni-channel digital presence, HIG serves corporate and individual customers across Nigeria. It is also championing financial inclusion and leading the digital insurance play in Nigeria, demonstrating its mission to democratise access to insurance.

The Group’s mission is to improve lives and transform Africa. In today’s world, where technology is critical for success, HIG has become a game-changer, harnessing AI-driven digital tools, intuitive apps, and seamless connectivity, to provide simple and accessible insurance to everyone.

HIG strongly believes that insurance should not be a luxury, but a fundamental necessity and that every Nigerian deserves access to essential financial services to live a more prosperous life.

A deep understanding of its customers’ needs is at the heart of HIG’s philosophy. The company offers a wide range of insurance products tailored to meet the diverse requirements of individuals and businesses. From life and health insurance to property and casualty coverage, Heirs Insurance provides comprehensive solutions that protect what matters most.

Backed by the robust financial resources of Heirs Holdings, Heirs Insurance enjoys a solid foundation for growth and stability. This financial strength ensures that the company can meet its obligations to policyholders and maintain a high level of solvency.

The Journey 

To the MD/CEO, Heirs Life Assurance, Niyi Onifade, “the journey started in 2013 when our parent company, Heirs Holdings, carried out a research on the Nigerian insurance industry which revealed that the penetration rate for insurance in Nigeria has over the years being very low. 

“In fact lest than one per cent. The reasons for these are quite many. You have the issue of lack of trust where people don’t really trust the Nigerian Insurance Industry particularly when it comes to clean spinning. Then you have the issue of products and services that are not really meeting the needs of the people. 

“Our parent company decided that look, we can actually enter into the Nigerian Insurance industry to make a difference. And that year, Heirs Holdings approached the National Insurance Commission for an operational licence as an insurance company. 

“It took us seven years to get an operational licence from the Commission. On November 27, 2020, the chairman, Mr. Tony Elumelu led our team to NAICOM’s headquarters in Abuja where we got two licences. One for Heirs Life Assurance Limited, and  the other one for Health General Insurance Limited.

We launched to the public on June 1st, 2021. That was about six months after we actually started operations.”

For her part, the Chief Marketing Officer of the Group, Ifesinachi Okpagu, explained that in 2015, “we were about nine or 10 of us. We came together very excited to start what we now know as Heirs Insurance Group. Then it was Heirs Insurance. 

“I remember we were just three or four as at the time.This place was empty. The entire building was totally empty. We didn’t have furniture, we didn’t have fittings, nothing. 

It’s just gratifying to see now that we are over 200 people spread across the entire country from this place where we started where we had nothing, no signage, no nothing, no paper, no branding, to this huge group with over 300 people in just three years.

Head, Legal Services and Company Secretary, Blessing Ezemelue, also said: 

“For us that started the journey, it’s a family business. We don’t see ourselves as staff. We see ourselves as partners to the business; we see ourselves as stakeholders. We have a special attachment to the company and we are proud of who and where we are today. “

In his contribution, the MD/CEO, Heirs General Insurance, Wole Fayemi noted that, “It is incredible to believe that a business we started from ground zero in 2021, and we have come as far as this.

“It’s quite uncommon and unprecedented in the Nigerian Insurance Market that within three years in operation both Heirs Life Assurance and Health General Insurance will have done as much as close to N40 billion naira. That is massive. 

“We are present in almost all United Bank for Africa (UBA) branches in Nigeria and that is aside our relationship with brokers, which no doubt has fetched us a pride of place before the broking arm of the industry and even before the direct retail customers in the industry. 

“So if you ask me, I’m very proud to be part of that resilient and highly determined people who have achieved this very great feat within a space of three years.”

Financial Performance 

In its recently released financial results for the 2023 fiscal year, the Group recorded substantial growth and an impressive performance across all business indicators.

The financial performance highlighted the Group’s resilience and operational efficiency.

For instance, the Group’s General and Life companies, combined, recorded a 59.30 per cent increase in Gross Written Premium (GWP), rising from N19.9 billion in 2022 to N31.7 billion, for the year ending December 31, 2023, as they both enter their fourth year.

In addition, the Group’s earned insurance revenue for year 2023 stood at N20.5 billion, a surge of 80 per cent, from N11.3 billion in 2022, reaffirming the Group as one of the fastest-growing insurance groups in Nigeria.

Breaking the results down further, Heirs General Insurance (HGI), the non-life arm of Heirs Insurance Group, reported a 77 per cent increase in GWP, rising from N8.5 billion in 2022 to N12 billion in 2023.  Total assets for 2023 stood at N18.1 billion, which was a 27.4 per cent increase from the N14.2 billion recorded in 2022. 

Also, profit before tax (PBT) surged from N791 million (restated) in full year 2022 to N2.4 billion in full year 2023, which was a staggering 203 per cent growth, signaling the company’s effective cost management and strategic growth initiatives.

Heirs General also reported a net investment income of N1.4 billion for 2023, a 45 per cent increase from the preceding year. This impressive top and bottom-line growth underscored the company’s ongoing development and its unwavering focus on delivering value to clients.

Demonstrating its commitment to customer satisfaction and upholding customer trust, Heirs General also disbursed N1.6 billion to policyholders in claims settlement, up from N471 million in the prior year. This sharp rise in claims settlement emphasised the company’s commitment to customers and its dedication to keeping service promises, with a strong focus on timely and transparent claims processing.

HLA, the specialist life insurance arm of Heirs Insurance Group, equally delivered phenomenal results with 71 per cent growth in GWP, rising from N11.5 billion in 2022 to N19.7 billion in 2023. Total assets grew by an extraordinary 98 per cent increase, rising from N19 billion in full year 2022 to N37.7 billion in full year 2023.

The company also demonstrated financial discipline, posting a 143 per cent rise in investment income, from N1.1 billion in full year 2022 to N2.8 billion in full year 2023. PBT increased by 395 per cent from N379 million (restated) in 2022 to N1.8 billion in 2023.

Furthermore, Heirs Life disbursed N2.5 billion in claims in 2023, representing a 119 per cent increase over the previous year’s N1.1 billion, reflecting its commitment to delivering timely financial relief to its customers during their times of need.

Also, HIB, the broking arm of HIG, delivered a strong performance with significant growth in income and profit. Its PBT rose by an impressive 128 per cent, increasing from N232 million in 2022 to N529 million in 2023. Total revenue grew by 68 per cent, climbing from N760 million in 2022 to N1.275 billion in 2023. HIB maintained a well-structured and efficient balance sheet, showcasing its strong earnings’ capacity and solid financial foundation.

Commenting on the results, Elumelu, who is the Group Chairman of Heirs Holdings said: “These results underscore our unwavering commitment to democratising access to insurance and delivering enduring value for our stakeholders. Heirs Insurance Group has achieved remarkable year-on-year growth in just three years of operations.

 “We set out to transform the insurance industry, and I am pleased to see the remarkable growth the Group has achieved and the innovations it has rolled out. We are optimistic about the future and emphasize our commitment to meeting the evolving needs of our customers while driving financial inclusion for everyone.”

As part of its strategic vision, the HIG has in the last three years, deployed enhanced digital capabilities and rolled out innovative engagement channels, positioning the Group as a leader in the digital insurance space in Nigeria. This commitment to technological innovation ensures seamless access to insurance products and services for all Nigerians, driving financial inclusion across all demographics.

Heirs Insurance is also committed to staying ahead of the curve by introducing innovative insurance products that address emerging risks and challenges. The company leverages technology to develop efficient and accessible solutions that simplify the insurance process. Heirs Insurance prides itself on providing exceptional customer service. The company’s dedicated team of professionals is always available to assist customers with inquiries, claims, and policy changes. A focus on building strong relationships with customers has contributed to the company’s positive reputation.

Corporate Social Responsibility

Heirs Insurance is actively involved in various community initiatives, demonstrating its commitment to social responsibility. By supporting local causes and investing in the well-being of the communities it serves, the company is fostering trust and goodwill. The Heirs Insurance Group has proudly contributed over N100 million to various corporate social responsibility (CSR) projects focused on education, community development, and financial literacy, demonstrating its purpose of improving lives and transforming Nigeria.

The Group recently awarded N8 million to three junior secondary students in Nigeria who emerged winners in its flagship CSR initiative, the Heirs Insurance Essay Championship, including a donation to winner’s school. Additionally, the Group has trained hundreds of parents in critical financial skills.

The Future

As Nigeria’s economy continues to grow, the demand for insurance products is expected to increase. Heirs Insurance is well-positioned to capitalise on this opportunity by expanding its reach, introducing new products, and enhancing its service offerings. By maintaining its focus on customer satisfaction, financial stability, and innovation, Heirs Insurance is poised to become a leading force in the Nigerian insurance industry. Heirs Insurance has no doubt established itself as a trusted and reliable partner in the insurance market. Through its customer-centric approach, strong financial foundation, innovative products, exceptional service, and commitment to community engagement, the company has built a solid reputation and positioned itself for continued growth and success.