Experts have challenged the Nigerian insurance industry to expand its business scope by building adequate capacity to compete with its global peers and play in big industries which include oil and gas.
With such capacity and effective deliverables, stakeholders will have no need to engage international insurance firms but rather prefer patronage of local insurers.
President, Lagos Chamber of Commerce and Industry (LCCI) Mrs.Toki Mabogunje threw the challenge as she called on the industry to rise to the task of providing adequate and professional insurance covers for wiling policy holders.
Mabogunje, in her remarks during the special insurance day organized for the Nigerian Council for Registered Insurance Brokers (NCRIB) at the 2021 Lagos International Trade Fair also urged Nigerians to embrace insurance and take advantage of it’s numerous inherent benefits to better their lots.
According to her “we urge insurance companies to build capacity in handling big international deals for the oil and gas, maritime, and aviation sectors who hitherto engage foreign insurance brands for their top-rated insurance transactions.
”We also call on government to patronize local insurers for their massive insurance deals henceforth,
”The insurance sector must rise to the task of providing adequate and professional insurance covers for wiling policy holders,” she said.
Mabogunje, added that risk management and business continuity have become critical factors in enterprise sustainability and prosperity in the post-pandemic era, adding that “We are in world of growing uncertainties, emerging risks, and exposure to danger in the society.”
She further urged Nigerians to embrace insurance, but noted that the onus is on players to embark on extensive awareness creation initiatives to properly educate the people benefits of insurance in mitigating risks.
LCCI boss described insurance as critical to business, economy sustainability and national growth.
NCRIB President, Barr Rotimi Edu, said the focus of his administration is “Broker Centricism,” and expressed the Council’s preparedness to drive the industry growth through awareness.
Edu, particularly expressed worrisome on the the issues of building collapse especially the most recent 21-Story building at Gerard Street which he said did not have insurance cover.
He therefore called on government and other relevant authorities to ensure enforcement of compulsory insurances.
Edu dismissed misconceptions that insurance industry don’t pay claims, stating that the industry is paying genuine claims and that the issue of non-claim payment was in the past.
He described insurance as bedrock of every economy, and that the NCRIB In collaboration with other stakeholders are working assiduously to increase insurance accessibility and acceptability through enlightenment campaign.
He observed low performance in life insurance, vehicle insurance and property insurance policy assuring that his administration was working to increase its acceptability.
He said the country has over 400 registered insurance brokers, and there is plan to ensure its spread to the 774 Local Government Areas.
Speaking on the topic “Why Insurance,” the
President, African Insurance Organisation and Managing Director/Chief Executive Officer, NEM Insurance Plc, Mr Tope Smart, educated participants at the forum on the critical key that insurance play.
Smart, described insurance as risk transfer mechanism where insured risks are transferred insurance companies in return for payment of a specified amount known as premium.
He said insurance provide a guarantee of compensation for specific loss, damage, illnesses, or death.
Other benefits of insurance according to him are protection against financial losses and compensation for premature death or permanent disability; it supports and enhances economic growth; insurance sustains economy supply chain and enhances job creation.
He called on Nigerians to always get their insurance policy through Brokers, even as he described insurance as a principal thing for any individual and economy generally.
On his part, Mr. Samuel Ogbodu, Chief Executive Officer, Sunu Assurances Nigeria Plc, said insurance companies paid over N9 billion to claimants affected by the 2020 #EndSARS destruction.
He said the importance of underwriters could not therefore be overemphasized in the sustainable development of a country.
The NCRIB Deputy President, Mr. Tunde Oguntade, and Vice President, Mrs. Ekeoma Ezeibe, on their part provided insights on the roles of the Brokers In the insurance value chain and the duties of the Brokers In insuring the the nation.