By David Akinmola
Stakeholders in the insurance industry have urged farmers to put a place life insurance policy to address the menace of food shortage in the country.
Speaking at a seminar organised for journalists by the insurer with the theme “The role of insurance in national development.” The Head of the Technical Department, Mutual Benefits Assurance, Ms. Titilayo Akinsiku, said food insecurity in Nigeria is a major concern for insurance operators; hence, they are looking for ways to help the farmers.
Akinsiku, said “If farmers are covered from the risk of the insecurity bedeviling the country through life policy that would give them and families assurance for compensation in case of any eventuality.
She noted that farmers would be encouraged to go to their farms to work amid the insecurity, and this would also increase food production and supply across the country.
According to her, underwriting firms are working towards a life policy for farmers that covers personal accidents, medicals, and lump sum in the event of death, among others.
Akinsiku said that the role of insurance in national development was multifaceted and central to the development of economic growth, social welfare, risk management, and overall resilience.
She said that a functioning insurance sector has a tangible impact on promoting sustainable development goals, enhancing citizens’ overall quality of life, and developing the socio-economic progress of a nation.
“It protects against financial losses due to unforeseen events such as natural disasters, accidents, or health issues. Only an economy that is ready to die undermines the role of insurance,” she said.
According to her, insurance contributes to the economy through, risk mitigation and financial stability.
“It also contributes to the economy through business continuity and resilience; social welfare and inclusivity; risk management and sustainable development as well as investment and capital formation, ” she said.
She suggested that insurance should be made mandatory for individuals and business organisations to encourage and protect investors, as well as sustain economic growth.
Akinsiku also advised insurance regulatory authorities to put in place policies to enforce transparent and efficient management of funds by insurers.
According to her, insurance investors should also diversify their portfolio of investments to increase return and ability to pay claims, which will in turn deepen insurance penetration.
Also at the programme, the Managing Director/Chief Executive Officer of Mutual Benefits Assurance, Femi Asenuga, harped on the important role of the media in educating the public on how insurance contributes to economic resilience.
Asenuga said that the media is a powerful tool to communicate the complexities of insurance in a relatable and impactful way to build public trust and confidence in the industry.
He said that the media could encourage more people to embrace insurance.
He decried the low level of insurance penetration in Nigeria despite the country’s high population and large demographic density while calling for policy changes to increase insurance uptake by Nigerians.
Also, the Managing Director, Mutual Benefits Life Assurance Ltd., Biyi Ashiru-Mobolaji, who spoke the issue of claims payment in the industry, acclaim the role of insurance in the economy and expressed concern about some quacks operators in the sector, which he said must be flushed out.
He said that the insurance industry over the years had paid so much as claims to policyholders in ensuring the financial prosperity of the people.
He described fraudulent claims as one of the challenges facing the industry.
According to him, the industry is working with relevant authorities to curb the menace of fraudulent claims to ensure that genuine policyholders reap the value of insurance.
