…As global marine insurance to reach $45.2b by 2032
By Favour Akinmola
The Federal Government has said a viable insurance framework is needed to address the risks linked with Nigeria’s blue economy to realise the sector potential in the economy.
This, the Minister of Marine and Blue Economy, Adegboyega Oyetola, revealed in a paper delivered at the 2024 National Insurance Brokers and Exhibition tagged, ‘Insurance and Blue Economy: Connecting the knots.’
The minister said that as of 2023, the global marine insurance market was valued at approximately $33.9 billion and is projected to reach $45.2 billion by 2032, growing at a rate of 3.2 percent per annum.
To him, the growth is driven by the increased volume of international trade, the rise in the frequency and severity of natural disasters, and the growing need for comprehensive coverage due to geopolitical tensions.
Therefore, Oyetola stressed the need for insurance to play a vital role in the blue economy space ensuring risk mitigation covering traditional maritime risks like hull and cargo damage, liability, and piracy.
He also noted that insurance can address emerging risks like sea-level rise, extreme weather events, and ocean acidification and protect investments in innovative technologies like offshore renewable energy and aquaculture.
“Considering the potential of the blue economy to serve as a significant driver of economic growth and sustainable development, it is exposed to various risks from public and private contracts, tariffs, local and international regulations, natural disasters, climate change,” Oyetola said.
The minister observed that insurance plays an important role in creating a good enabling environment for investments by increasing investor confidence.
He said that by insuring against risk in the maritime space; the sector can attract investment, facilitating access to finance for sustainable ocean-based projects, and incentivising sustainable practices that offer lower premiums to businesses with strong environmental and social performance.
“Marine insurance is a type of insurance that covers losses or damages incurred at sea or inland waterways. It provides financial protection for ships, cargo, and other property involved in maritime trade,” he said.
According to Oyetola, marine insurance is an indispensable tool for the shipping industry, providing financial protection against a wide range of risks. He said that marine insurance ensures the smooth operation of global trade by mitigating potential losses and liabilities.
The minister laid emphases on the role of the sector in Nigeria’s overall economic landscape, Oyetola said that the marine insurance subsector is a significant part of the global insurance market.
Speaking earlier, the President Nigerian Council of Registered Insurance Brokers (NCRIB) Prince Babatunde Oguntade, called for national recognition of the insurance sector, as no nation can develop unless it appreciates insurance as the bedrock of the economy,
Oguntade said that this year’s conference was organised to help share knowledge, explore innovative solutions, and forge strategic partnerships that would propel the industry forward.
“The choice of this venue and the choice of the themes and speakers were intentional. Our industry can no longer remain the shadow of itself.
“This conference offers a unique platform for us to engage with thought leaders, experts, and peers, sharing insights on the latest trends, challenges, and opportunities in the insurance sector,” he posited.
He submitted that someone needs to be intentional in taking the industry out of the blighted imagery, noting that the industry has been undervalued for too long, especially, as it concerns its relevance to national development. “No nation develops beyond its level of insurance appreciation, as the bedrock of its economy. The insurance industry is the major source of investible funds in other national economies and, owns banks, but this is not the case in Nigeria as the industry is at the backwaters of the various economic considerations of government,” he remarked.
He specifically appreciated the various initiatives of the present administration in transform the insurance industry, especially through more favourable legislation.
“It is hoped that when the Insurance Bill before the National Assembly is passed and assented to by the President, the situation will change.
