The Minister of Finance, Mrs. Kemi Adeosun, has said that the Federal Government will address the low performance of the insurance sector.
She said this during the West African Insurance Companies’ Association educational conference in Lagos on Wednesday.
Adeosun said, “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. Sadly, this is less than one per cent in Nigeria.
“As a government, we are committed to identifying the challenges and taking steps to address the current poor performance of insurance in the country.”
The minister said there was a strong link between insurance market development and economic development.
For this reason, she inaugurated the Consolidated Insurance Bill Review Committee in February 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 into law will positively change the face of insurance regulation and practice in our country,” she said.
The Commissioner for Insurance, Mr. Mohammed Kari said, insurance played an important in the development of economies in terms of services and infrastructural development.
According to him, insurance provides financial and social stability, enhances trade and commerce, offers opportunities for savings, which in turn enhances the well-being of the citizenry and the nation in general.
Kari said insurers were faced with the challenges of new businesses, changing laws and regulation, among others.
“Notwithstanding these challenges, I see enough potential for positive growth of the insurance sectors in the West African states, given the collaborative efforts of the players, regulators and governments in the region,” he said.