With the improved security in the Northeast of Nigeria, it is expected that business activities will begin and insurance can be reintroduced by insurance operators, Director-General, Nigeria Insurers Association (NIA), Sunday Thomas, has said.
Thomas, who made the statement in Lagos, said there is a lot of work going on in the Northeast zone, and therefore urged insurers to begin to plan how they would quickly tap into the new opportunities that abound in the zone.
He said this is the time for insurance to leverage on the ongoing development, adding that the deployment of the intervention fund by the Central Bank of Nigeria (CBN) to young entrepreneurs creates opportunity for insurance culture.
“Public patronage of the industry is yet to reach the desired level notwithstanding the various legislations enacted to promote patronage,” he said, adding that Inadequate enforcement of compulsory insurances, failure by the government to lead by example and underutilisation of capacity in the real sector, are major challenges of the industry.”
Speaking about the opportunities in the industry, he said the largely untapped market creates opportunities. “The insurance industry in Nigeria presents a lot of growth opportunities due to the low insurance penetration. Attention should be given more to the development of the retail market while waiting for corporate accounts rebound, which seems to have become investors delight
“Given the difficulty in foreign remittances, it is expected that compliance with local content laws will increase,” he added.
He noted that notwithstanding the adverse macroeconomic environment, premiums continued to register growth in many countries, particularly in emerging market economies, the Organisation for Economic Cooperation and Development (OECD).
He said that according to IMF’s world economic outlook projections, Nigeria is expected to grow at a faster rate than the average emerging market and developing economies growth of rate of 5.3 per cent.
The Nigerian population should be an asset that can be leveraged on to develop any sector of the economy including insurance, he added.
Source: The Nation