Nigeria’s insurance penetration is estimated to be less than 1%, and experts have said that a lack of enforcement is to blame for the poor adoption of mandatory insurance.
They also emphasized the necessity of a solid partnership between the government, security agencies, regulators, and industry participants to explore prospects in various mandatory insurance plans.
The National Insurance Commission (NAICOM) in particular has made some attempts to investigate these possibilities, but the absence of enforcement has been a significant impediment.
Experts gathering at the recently finished Africa Insurance Organisation (AIO) conference held in Kenya advised participants to cooperate with one another to address the problems preventing the expansion of the insurance business.
In a presentation presented at the event, the association’s former president, Tope Smart, said that closing the sector’s deficit requires tackling all of the problems that African markets face.
We are capable of accomplishing this, he declared.
He said he was looking forward to a healthier African insurance business in the years to come and urged African insurers to reaffirm their faith in AIO leaders.
The issues facing the business, notably in the Nigerian insurance sector, were also mentioned by Smart. “Low penetration and slow development, despite the enormous opportunity for expansion, are some of the challenges of the sector,” she added. We are working together to address these problems. These are a few of the justifications for our existence.
The First Bank of Nigeria (FBN) Insurance’s Managing Director/Chief Executive Officer, Valentine Ojumah, commented on the topic of the delayed uptake of insurance by stating that it is an important component of the financial system. He emphasized that a sizeable component of the economy in developed markets is made up of the insurance sector.
According to research by Vetiva Capital Management, the insurance industry is crucial for long-term economic growth and might be used as a source of long-term funding. It was also stated that this will increase savings needed for economic growth and deepen and broaden domestic financial services.
“We think that the insurance industry is essential to the growth and development of emerging and transitional economies like Nigeria, as well as to the provision of trustworthy risk coverage to the populace. According to the paper, insurance promotes stability by reducing the risk of volatility or failure for both large and small enterprises.
