Experts in the insurance industry have called on the government at all levels to provide credits that would promote private business operations and entrepreneurship to empower Nigerians economically.
According to them, if access to credit were guaranteed, Nigerians would acquire assets, take loans and invest so that underwriters could provide risks that would protect their assets against loss.
Speaking on ‘Driving Insurance Penetration in Nigeria’ at Leadway Assurance 2022 media training, the Principal Investment and Strategy at Leadway Assurance Company Limited, Joshua Ogbeifun, enjoined insurers to work in partnership with government, regulators and other stakeholders to help shape and reform policies. He also emphasised the need for the players to demystify insurance.
Nigeria’s low insurance penetration amidst its huge population will see a quantum leap if the country can intensify financial inclusion education and improve access to credit, he said.
According to him, external factors needed to increase penetration in Africa’s most populous country including financial awareness. Others are enforcement of compulsory insurances and improved microeconomic environment. He said low penetration was a major challenge facing the industry.
Ogbeifun said that insurance penetration in Nigeria estimated at 0.4 per cent showed that “we lag”. He said regulators needed to put an adequate regulatory framework in place to move the industry to a great height.
Ogbeifun expressed worry that a situation where there are about only three million cars that have valid insurance policies is bad for the industry and the country at large.