How to protect Infrastructures through Risk Transfer mechanism

The Nigerian Insurers Association (NIA) has advised all tiers of government in the country to protect huge investments spent on infrastructure through risk transfer mechanism of insurance.

The Director General of the Association, Sunday Thomas, speaking with The Guardian in Lagos said insurance still remained he engine room for economic survival of any country, that is, insurance exists for the survival of other businesses.

According to him, the relevance of insurance to national development was not surprising as reduction of effect of uncertainty helped various sectors of the economic circle and reduce the impact of crisis situation on the micro and macro levels.

He said that government should take cognizance of hundreds of billions of dollars that were spent every year for improving transportation, power, ports and terminals and energy capabilities, need to protect these investments through the risk transfer mechanism of insurance.

According to him, the Nigerian insurance industry has a key role to play in contributing to the nation’s economic growth as a risk transfer and management mechanism, growth driver for other sectors of the economy and a huge potential for direct and indirect labour employment.

He said “It is a provider of long term capital investment needed for infrastructure projects which will help drive a competitive healthy and robust national economy”.

He commended the present government for the inauguration of the Consolidated Insurance Bill Review Committee to review all aspects of laws that will make the industry to play its role effectively in the economy.

 

Source: Guardian Newspaper