As elections kick-off on Saturday to produce the next Nigerian president, players in the insurance industry wish to have a ‘Mr. President’ that understands the economy and the role of insurance as a catalyst for economic growth.
The reason is that no advanced economy anywhere in the world has developed without a strong insurance industry. It remains the major mobiliser of long term funds for infrastructure development as well as an effective means of risk management that enables other businesses to survive.
And for Nigeria, given available potential, the insurance industry has been a major source of foreign direct investment, having received global insurance investors like Old Mutual, Sanlam, AXA, Allianz, SUNU, among others.
A president that understand these roles will give the insurance industry a priority by not only ensuring that all government assets are insured and premiums are adequately paid, they will also create a conducive environment that will enable the industry to grow.
There is need for policies that will drive insurance uptake like the compulsory insurance which are not unique to Nigeria. Enforcement of compulsory insurance has not happened and this is where government has a critical role to play.
A situation where government and its agencies fail to insure their assets adequately, fail to pay premium on employees group life insurance spanning several months, is not only a sign of negligence, it shows lack of commitment.
On the environment, the insurance industry had expected commitment of the incumbent government to give its Drafted Consolidated Insurance Bill a priority to enable the sector achieve speedy growth, but this did not happen, thus leaving the sector to grapple with issues that are curable.
Kemi Adeosun, former minister of Finance had constituted a Committee to review the Draft Insurance (Consolidated) Bill, with a view to making it a framework or principle-based legislation; a comparative review of the bill to align it with the powers of other financial regulators in the country, as well as a thorough examination of current market problems and recommendations of appropriate regulatory powers to allow the insurance regulatory authority act appropriately.
All of these unfortunately ended without meaningful outcome to date.
Paul Odah, an insurance practitioner explained that the role of insurance in any economy, particularly in mobilisation of long-term funds cannot be taken for granted in the pursuit for economic growth and development in any nation.
Odah who made the remark in a presentation, said insurance has enhanced the confidence of businesses to become adventurous, knowing there is a back-up plan in the event of any mishap –be it corporate or individual.
The confidence of secure savings will reduce the possibility of corruption in preparation for retirement or associated anxiety, the expert stated.
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