To tackle the issue of limited Insurance adoption in Nigeria, Mr. Femi Asenuga, the Managing Director and Chief Executive Officer of Mutual Benefits Assurance Plc, has urged the federal government to reform policies that would promote increased interest in insurance offerings and transform the public’s view of the insurance sector. At a one-day workshop hosted by Mutual Benefit Assurance Plc for Nigerian Association of Insurance and Pension Editors (NAIPE) members in Lagos, Asenuga voiced his worries regarding the country’s continually inadequate insurance penetration.
Despite the nation’s large population and considerable demographic advantages, assurance product adoption remains low. Asenuga stressed that the present circumstances do not reflect what they ought to be, considering that the nation is Africa’s most populated and has one of the continent’s largest economies. He emphasised how crucial a strong assurance industry is for nurturing a stable and thriving community. He pointed out that an adequate Security sector is key to establishing a backdrop that promotes sustainable growth and improves individuals’ quality of life.
Insurance is crucial for national growth, ensuring economic progress.
He expressed disappointment that the current situation in the region falls short of this potential. With a population exceeding 200 million, they should lead the charge in its penetration and set an example for other African nations. Furthermore, the seminar, titled “The Role of Insurance in National Development,” provided an opportunity for sector professionals to explore the importance of assurance in promoting economic progress. In her speech, Mrs. Titilayo Akinsiku, the Technical Department Head at Mutual Benefits Assurance, pointed out the role of insurance in promoting national growth.
She stressed that risk management is a financial safety measure and is vital to creating a robust economy. Akinsiku elaborated that assurance protects against potential risks that may hinder national progress. Risk management allows individuals, companies, and governments to rebound swiftly from difficulties, ensuring economic consistency by alleviating the financial burdens associated with unexpected events. She believes a robust assurance industry is fundamental to a nation’s success, as it offers essential backing for advancement and prosperity across various sectors.
Mobolaji urges integrity in the sectors to improve public confidence.
In addition to promoting economic stability, Akinsiku pointed out that financial protection is crucial in stimulating social development. By offering protection against risks such as illness, disability, and loss of income, assurance helps improve citizens’ overall well-being. This, in turn, contributes to a more productive workforce and a more vibrant economy. Mr. Biyi Ashiru-Mobolaji, managing director of Mutual Benefits Life Assurance Limited, highlighted the necessity of tackling the nation’s financial protection sector’s challenges. He recognised the industry’s crucial contribution to national growth and worried about dishonest industry practices.
Ashiru-Mobolaji called for more robust regulatory oversight and enforcement to ensure that the risk management industry operates with the highest standards of integrity and professionalism. He argued that restoring public confidence in the sector is crucial for increasing patronage and realising the industry’s full potential in contributing to national development. At the end of the workshop, it was evident that attendees recognised the sector in the country as having significant promise for promoting economic and social progress.
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As a result, this promise can only be fulfilled if they collectively tackle the challenges that affect growth. Such initiatives should encompass policy changes to improve the industry’s adoption and strategies to improve public awareness regarding its benefits. Lastly, they call for policy changes and insights shared by other industry leaders, underscoring the urgent need for a revitalised approach to assurance in the country. By creating a more conducive environment for the industry to thrive, they can unlock the full benefits of a robust assurance sector, ultimately contributing to the nation’s long-term development and prosperity.