• Sunday, February 25, 2024
businessday logo

BusinessDay

Rebased Economy: Insurance industry’s contribution to GDP drops by 0.6%

Continental Reinsurance plc

Fola Daniel, the Commissioner For Insurance, National Insurance Commission (NAICOM), on Thursday said the insurance industry’s contribution to the Gross Domestic Product (GDP) has drop to 0.6 per cent.insurance

Daniel made the disclosure at the 2014 Insurance Professionals Forum organised by the Chartered Insurance Institute of Nigeria (CIIN) in Abeokuta, Ogun State.

The theme of the forum is “The Insurance Industry: New Trends, New Strategies”

According to Daniel, the the drop in the contribution was as a result of the recent rebasing of Nigerian economy which made it the largest in Africa and the 26th in the world.

The  old based economy, the insurance industry’s contribution to the GDP was 0.7 per cent.

“This, therefore calls for more dynamic strategies to deepen insurance reach among the populace. The industry as a matter of deliberate policy should come up with new ways of doing the business in order to achieve better result.

“Our marketing strategy must change, the product design and packaging must change and the approach to policy holders and their complaints must change.

“All hands must be on deck to ensure that the message of insurance is taken to the grassroots,” he said.

The commissioner said that the industry must move the insurance market from its present level to a higher place within the Financial Services Sector.

He said that there must be a consensus on how best to tackle the challenges facing the industry.

According to him, the fundamentals for a thriving insurance industry are there in the country with a vast population, an active economy and a well capitalised industry.

Daniel said that the commission would do everything to ensure the growth of the industry but warned that the operators must learn to play by the rules.

The CIIN President, Mr Bola Temowo, in his address of welcome, said the institute was committed to the goals of the Professionals Forum.

He said that in its effort to develop insurance the institute had presented 2,000 copies of insurance textbooks for Secondary Schools to the Ogun State Ministry of Education.

Temowo said the institute had made similar donation to the Lagos State Ministry of Education recently.

He said that the institute would follow the donation of textbooks with training of teachers on insurance nationwide.

According to him, the institute will explore all the avenues to ensure that insurance education takes root in secondary schools and tertiary institutions.

NAN