The CBN has called on insurance companies to develop accessible and reliable database of operators to help the sector address slow pace of insurance penetration in Nigeria.
The Head of Data Management Office (DMO) of the CBN, Mr Olayinka Peter who gave the advice at the opening of a Micro-insurance Fair in Lagos organised by the Nigeria Insurers Association (NIA), with the theme, “Making Insurance Work for the Informal Sector’’ noted that a lack of trust and financial knowledge among other factors is hindering insurance penetration.
Peter believed that this could be eliminated if operators could provide the National Insurance Commission (NAICOM) with quality database.
“It is common knowledge that insurance culture is very low among the informal sector and it will take deliberate effort like this to win the confidence of this sector.
“The data we received from NAICOM is not comprehensive enough to form the basis of research for the industry.
The apex bank is ready to partner with NAICOM to deepen the industry’s financial penetration,’’ Peter said.
He said that quality database would provide solution to the slow insurance penetration in Nigeria.
Also speaking, Mr Godwin Wiggle, the Chairman of the Nigeria Insurance Association (NIA), said that the conference was aimed at bringing stakeholders to brainstorm on micro-insurance.
He noted that the overall objective was to ensure that both the demand side and the supply side of micro- insurance were in alliance.
“This conference is meant to create awareness for our member’s micro-insurance products for the informal sector of the economy,’’ he said.
The chairman pointed out that a diagnostic study showed that less than one per cent of the adult population in Nigeria, had access to voluntary insurance policy.
“Nigeria is among the least countries in terms of insurance contribution to GDP which is about 0.72 per cent.
“The Nigerian insurance sector is also regarded as grossly untapped opportunity.
Insurance has not appealed to the informal sector, which constitutes over eight per cent of our population.
The way forward is through closer interaction with the sector, intensive capacity building and greater expertise in micro-insurance.
Other solutions include provision of unique micro-insurance services, development of people-friendly products and improved innovative system,’’ he said.