Businesses insured only 750, 000 lives in 90 years
In regarding 90 years of insurance industry’s surgical procedures in Nigeria, the life underwriting firms have only had time to insure 750, 000 lives in the country.The Group Managing Director, Shared Benefits Assurance Plc, Mr. Similar Ogunbiyi, disclosed this during an interview in Lagos with our correspondent in Lagos.
He explained, “If you look at the policies issued within the last 90 years that insurance has receive this country, total number of individual policies issued is approximately 750, 000, not up to one million. You can see the insurance gap. ”
According to be able to him, this was one of reasons why the sector still contributes less than one per cent to the country’s Gross Domestic Product.
The group managing director noted that insurance is the bedrock of any economy. As outlined by him, insurance is an avenue where extended funds can be pulled together for investment.
While stressing the relevance in the life insurance business, he explained, “The future of the industry lies in life underwriting; go to Southerly Africa, Europe, all the places were insurance is basically answering the name, it is actually life underwriting and have long term fund. When you are concentrating heavily on corporate insurance business alone, where will you obtain money to do long term investments? ”
According to him or her, in developed economies of the planet, insurance is a basic point of getting value, alleviating poverty and empowering people from the pool of resources that lifespan funds generate.
Ogunbiyi reiterated the firm’s commitment on the development of retail insurance on the market.
He said that retail plans would help to alleviate the sufferings in the low income earners and add value to them.
Ogunbiyi said, “We are out to make certain insurance is available on the table of everybody in the country, we know the significance of insurance and what it may actually do for the nationwide economy. ”
According to him or her, this segment of the market had be a major source of growth for the firm within the last few years.
He stressed the requirement for operators to pay more attention to the development of retail insurance, just as corporate businesses had been receiving attention on the market.
“Insurers have to go how of retail market, create services and products that will add value on the people, products that people can easily see the benefits directly, when you do that, people will take insurance, ” Ogunbiyi said.
The Taking care of Director, Union Assurance Company Limited, Mr. Godwin Odah, observed that a lot still needs to be done to create insurance to the subconscious of everybody.
For instance, he said, “There is hardly anything you do that doesn't involve risk and these hazards are risks that the average Nigerian does not need to bear by himself. ”
As outlined by him, the insurance firms need to think about addressing the needs of each Nigerian, so that it may well be more attractive to the populace.
Odah pointed out that insurance is the only sector that exists solely for supporting other industries to survive.
This individual said, “Insurance helps to generates confidence and provides the business impetus to really exist without bordering about failure. It generates enough entrepreneurial confidence in the individual. ”
He also observed that within an economic downturn, the first priority is normally on how to survive.
As outlined by him, this is where insurance ought to come forth because an entrepreneur’s chance to survive hard times is taken care of by insurance if only they are properly insured.
‘If you encounter a loss, you get paid for. An entrepreneur should sit lower and ensure that his operations when it comes to risk aspect, in terms in the possibility of losses or unexpected happening a great aspect of the company are usually protected, ’ Odah said.
