The federal government is taking steps to address the current poor performance of insurance in the country, the Minister of Finance, Mrs. Kemi Adeosun, has said.
She disclosed this at the just concluded West African Insurance Companies Association (WAICA) in Lagos, stressing that in line with the move to diversify and develop the economy, government believes insurance is a strategic tool that should be effectively utilised towards the attainment of the goal.
Adeosun, who was represented at the event by the Director of Efficiency Unit in the Ministry of Finance, Mrs. Patience Oniha, said there is a strong link between insurance market development and economic development, adding that the commonly used index of measuring the development of insurance in an economy is market penetration which is the ratio of total insurance premiums to the Gross Domestic Product.
According to the minister, insurance contributes less than one per cent to the GDP; to change the ugly situation, she said the government was committed to identifying the challenges and taking steps to address the current poor performance of insurance in the country.
“It is on this premise that in February, earlier this year, I inaugurated the Consolidated Insurance Bill Review Committee in a move that seeks to make the bill conform to the ideals of contemporary insurance practice as well as facilitate public awareness and consumer protection.
“We are optimistic that the work on the bill and its eventual passage to law would positively change the face of insurance regulation and practice in our country, Nigeria,” she said.
Adeosun called on the Nigerian Insurance Industry to fully cooperate with the committee setup to review the industry’s bill so as to come up with a draft that would be the impetus for rapid growth not only for their sector but the Nation and in particular all consumers of insurance services alike.