Running a business in today’s environment was likened to pushing a massive ball up a hill. In this analogy, insurance was the critical element that helped businesses prevent the ball from rolling backward.
Covering simple things like fire, flood, illness, accident, tools and technology, or taking out more complex covers for business interruption cover, can prove critical to the survival of a small business.
This is especially important when a business is unable to perform and cannot generate profits because of volatility or other risks beyond its control.
These were keep points at recent Coronation Insurance webinar, which examined the critical role of insurance in helping businesses survive and prosper, especially in challenging economic environments.
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Olamide Olajolo, CEO of Coronation Insurance Plc who led the discussion alongside other panellist looked at survey of challenges currently facing businesses in Nigeria, highlighting the relevance of insurance in helping enterprises manage inflation, foreign exchange constraints, and talent flight while protecting assets, processes, and outcomes essential to keeping businesses going in the face of volatility and disruption.
“In short, far from being a luxury to dispense with in tough times, insurance was, in fact, a key driver of survival and success in challenging markets, they noted.
To increase access to insurance, Technology is proving critical in making insurance both more accessible and affordable to SMEs as well as ordinary people in Nigeria. By deepening insurance penetration in the county, technology has become a critical driver of broader financial inclusion, extending the longevity and resilience of smaller businesses.
Technology, and especially artificial intelligence, are also transforming the evolution of insurance in Nigeria away from one-size-fits-all off-the-shelf insurance products to individually tailored policies informed by the particular needs, goals, and risks of individual businesses. In an increasingly digitally interconnected world where many Nigerian knowledge or service businesses operate across the planet, cybersecurity, proprietary intelligence, and directors’ liability covers are increasingly relevant to small businesses – right from start-up.
Greater insurance penetration also builds resilience among communities and the broader economy.
Societies with higher levels of insurance are better positioned to manage risks, shocks, and disasters, like climate change, pandemics, or global economic crises. In addition to providing the capital to keep businesses going when crises hit, insurance also promotes the exchange of information, building the data and knowledge banks required to anticipate, manage, and spread risks.
While in the past paying annual insurance fees was beyond the reach of small businesses, today technology also makes it possible for even the smallest business to tailor covers with monthly or quarterly terms that suit limited cash flow and earnings profiles.
The Nigerian insurance industry currently pays about N3 billion in claims annually to hundreds of thousands of businesses across the country. Increasing the number of businesses covered by the country’s insurance net would dramatically increase the resilience and performance of the local economy and further entrench trust in the sector.
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Other panellist include Henry Mascot, co-founder and CEO at Curacel; Tochi Ginigeme, founder of Mesh Venture; Anthony Olasele, head of Corporate Sales at Coronation Insurance Plc; and Vincent Ezeora, head of Sales and Marketing at Emirates HealthConnect24x7 Limited.
The webinar was hosted by Wole Famurewa, CNBC Africa Anchor, with concluding remarks from Adewale Adeneye, executive director, Coronation Insurance Plc.
