Insurers tap 2025 budget for growth

The insurance industry is looking for growth opportunities in the 2025 National Budget, and how it can key in, to support President Tinubu’s one trillion dollar economy.

The industry with total premium N1.17 trillion at the end of third quarter 2024, and contribution to GDP at still less that 0.5 percent believes that deepening its presence and strategies in key sectors of the economy will offer growth opportunities and enhance contribution to economy.

The industry eggheads as well as experts in key sectors of the economy gave highlight on taping the opportunities at the

2025 Business Outlook organised by the Chartered Insurance Institute of Nigeria (CIIN) held in Lagos.

Yetunde Ilori, president of the Institute, in her welcome remarks at the event, said the theme: ‘Budget of Restoration: Insurance Industry Tool for Unlocking Sustainable Growth, speaks to the urgent need for us, as an industry, to rebuild confidence, embrace innovation and leverage our unique role in driving Nigeria towards a $1 trillion economy.

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She said, to move our industry forward, “we must take decisive and strategic actions enhancing public trust, prioritising prompt claims settlement and customer-centric policies, embracing technology by leveraging digital solutions and insurtech to improve accessibility and efficiency”

Olusegun Omosehin, the commissioner for insurance/CEO, National Insurance Commission (NAICOM) presenting his keynote address, spoke on the importance of the sector in tapping into opportunities in the budget.

He said, “One thing I know for a fact is, as a significant sector in this economy, insurance has to be an integral part of this process, and we must find our relevance now such that we are not left behind in the actual implementation.”

“So I’m hoping that part of what will happen at this meeting is that very interesting conversation should happen that will enable us a sector take full advantage of some of the provisions in the budget.”

He added, “There’s so much alignment in terms of the basic provisions and how the budget of restoration will help us. So, in light of this consideration, it is imperative that we engage in collaborative efforts to review our business and production activities, devise organic solutions to address industry-specific and national challenges, and share expertise on navigating the complexities of our sector.”

Ultimately, achieving sustainable growth requires a synergy of public-private sector collaboration, Omosehin said.

Akinyemi Ashade, audit partner and head of Insurance Sector, KPMG West Africa in his presentation said the insurance industry outlook remains positive and is expected to record strong growth.

He noted that, with huge allocation to capital projects, with ministry of works getting a large chunk, there is going to be expansionary activities in infrastructure, which will involve small and medium scale enterprises (SMEs) as well as employment generation for Nigerias.

Ashade believes that that these will spark activities in insurance business including group life insurance, pension, goods in transit insurance, marine insurance (for imports), health insurance for employees, special equipment insurance, and guarantees for new projects and renewal.

Concerning health, he said there are lots of transformation happening there. Now, every region seems to have a development commission, and what is going to happen in that space is a whole lot of infrastructure, and the opportunities are similar to what I have identified for works and infrastructure.”

“For power, there are different power projects, grid expansion, and renewable energy, and there are opportunities there for insurance businesses as well. The Bank of Agriculture and its recapitalisation will lead to granting of more loans to farmers

Ashade said, “There is need to intensify collaborative efforts to drive insurance awareness and penetration in retail segment”

“Aggressively promoting adoption of emerging technologies by insurance operatives to drive transformative efforts is critical, he said.

Oyekanmi Aboyeji, senior manager, Federal Inland Revenue Service (FIRS) speaking on tax reforms that affect the industry said identifying the risks peculiar to these Agencies and Priority Sectors and then develop innovative products will help the industry mitigate their risks and also good business for the sector.

Charles Ilo, senior manager, KPMG also making presentation at the event identified the relevance of embracing technology to deepen penetration.

Ilo said, “Harnessing digital technology and data can catalyse value realisation for players.”

According to him, profitable growth comes from successfully connecting the enterprise end to end.