Studying the impact of economic recession on Nigeria’s insurance sector

The Nigerian Council of Registered Insurance Brokers (NCRIB) has attributed the low patronage of insurance products by the public to the negative impact of economic recession.

NCRIB President, Kayode Okunoren, made the assertion at the 2017 first quarter press conference, organised by the Council in Lagos, said the industry is feeling the impact of recession more because of the poor acceptance and low appreciation of insurance by the public.

Noting that insurance is often given the least consideration, he expressed optimism that the trend would definitely change with sustained tempo on awareness creation, and adherence to ethics and professionalism on the part of operators.

“Generally, it is not the best of moments for the Nigerian economy, even though recent reports have specified that there is a ray of hope in the horizon. It is quite saddening that the insurance industry is one of the greatest recipients of the recessive economy in Nigeria, in view of its poor adoption by the public and the low appreciation of its cardinal place in people’s order of priorities,” he said.

On the need to leverage insurance for economic good, he called on the government, especially the Presidential Committee on Ease of Doing Business, to engage the industry in the process, in view of its pivotal role in business development.

He said: “I must not fail to appreciate the initiative of the Federal Government on its efforts in creating an enabling environment for business operations in Nigeria. The Presidential Committee on Ease of Doing Business has the onerous task of dismantling all inhibitions against business initiation and growth in the country.

“Whilst the Committee is already engaging strategic stakeholders in working out the modalities, it is the belief of the Council that the insurance industry should be involved in the process in view of its pivotal place in business development.

“As we are all aware, business growth must definitely come with risks which require professionals to handle and manage. Notwithstanding, the NCRIB will always seek ways to make contributions towards this loft initiative that is capable of ensuring a robust business growth and survival of our national economy,” he said.

He also proffered ways the government could sustain the feat achieved in firming up the Naira against other foreign currencies. According to him, the nation’s diversification initiatives must be followed through while there should be a renewed campaign in re-orientating the minds of the citizens away from over dependence on foreign goods and services.

“It is heart-warming that in the last few weeks the naira has been appreciating against other foreign currencies, bringing a little succour to Nigerians. To all intents, the efforts of government through the Central Bank of Nigeria in this regard are quite commendable.

Also, the Executive Secretary, NCRIB, Fatai Adegbenro, said: “As a consuming nation, we all know the agonies which the weakening Nigeria posed to daily living and survival of Nigerians. However, the take of the NCRIB is that the firming up of the Naira should be more systemic to sustain the trend.

 

Source: Guardian