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How Nigeria’s Insurance Industry Can Develop, By Experts

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Experts have identified operators and regulators cooperation, sustained and constant stakeholders’ engagement, among other factors as critical to the growth and development of the Nigerian insurance industry.

Speaking at a media parley jointly sponsored by Boff & Co Insurance Brokers Limited and B. Adedipe Associates Limited for insurance journalists in Yaba, Lagos, the experts
agreed that the industry had improved its capacity over time, but that a lot of insurance businesses in the country were still insured offshore.

They equally emphasized the need for local insurance firms to increase capacity to retain more risks locally and increase the profitability of insurance industry in the country.

Chairman/Chief Executive Officer of Boff & Co Insurance Brokers Limited, Chief Babatunde Olatunde- Agbeja, called for increased capacity, regular staff training, investment in information and technology and regular engagement with stakeholders to grow the sector.

“There is the need for increased capacity in the Nigerian insurance industry. When Boff & Co started special risk 25 years ago, we were doing about 70 per cent of our portfolio abroad, overtime, it reduced from 70 per cent to about 20 per cent and in the last six months, we had problems of finding excess capacity to insure abroad. I am proud to tell you that, as of today, the businesses we did in the last three months were 100% placed in Nigeria,” said Agbaje.

“The capacity is growing but we need to back it up with technical know-how, training and retraining of staff. Insurance industry should keep pace with the trend of events globally because insurance business is an international business.”

On the need for recapitalization of the industry, he said those who went to court to stop the earlier insurance recapitalization exercise were doing a lot of disservice to insurance industry.

“Although the industry is doing well, we only need to be better. We need to be sincere, be professional, and ensure that capacity increases continuously. The economy is open. Investors are coming in to invest in life and general businesses and special risks because they have seen things we are not seeing and we need to work more on our technical know-how because that’s still lacking,” Chief Agbaje added.

Earlier in his presentation titled “2021 Review and 2022 Economic Outlook,”

the chief consultant of B. Adedipe Associates Limited, Dr. Biodun Adedipe, applauded insurance industry but felt there were areas of improvement. He said Nigeria still experiences insurance low penetration and the reason should be identified. He added that government also needs to be responsible to its insurance obligations. “It needs to promptly pay premium. There is also a need for flexibility and enforcement of necessary laws.

“If the government and its agencies are responsible, put more firmness into enforcement, then, what we have today will change and the industry will create more value. And of course, when insurance sector is vibrant, it enables businesses and entrepreneurs to take risks which is part of the economic growth,” he pointed out.

On low insurance penetration in Nigeria, the economist said there is need for operators to provide adequate information to policyholders and prospective insurance customers and clients

“If someone says because of religion, can we point them to the direction of takaful? People need to see that insurance is fundamental and important for growth. Globally insurance is becoming more important and Nigeria cannot be left out from this trend,” Dr. Adedipe stated.

In his opening remarks, the Chairman, National Association of Insurance and Pension Correspondent Association of Nigeria (NAIPCO) and publisher of Inspenonline, Chuks Udo Okonta, explained the rationale behind the NAIPCO Media Parley with Boff and Company Insurance Brokers Limited and B. Adedipe Associates Limited entitled ‘2021 Review and 2022 Economic Outlook.”

He said the parley was put in place so that NAIPCO members as journalists and purveyors of Information would meet with experts to review 2021 economic review and examine the 2022 economic outlook so that they would be able to inform the public appropriately.

He appealed that the programme be sustained so that all concerned stakeholders would derive maximum benefits.

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