Adegboyega Oyetola, the minister of Marine and Blue economy, has reiterated the importance of a veritable insurance framework in mitigating the risks associated with Nigeria’s blue economy and to foster growth and development of the sector.
Oyetola gave this charge in a paper presentation at the 2024 National Insurance Brokers and Exhibition tagged, ‘Insurance and Blue Economy: Connecting the knots.’
According to him, insurance plays a vital role in the blue economy space ensuring risk mitigation covering traditional maritime risks like hull and cargo damage, liability, and piracy.
Similarly, he said that insurance can address emerging risks like sea-level rise, extreme weather events, and ocean acidification and protecting 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 said further that insurance plays an important role in creating good enabling environment for investments by fostering 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, 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 smooth operation of global trade by mitigating potential losses and liabilities.
Speaking further on the role of the sector to Nigeria’s overall economic landscape, Oyetola said that marine insurance subsector is a significant part of the global insurance market.
“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,” he said.
According to Oyetola, the growth is driven by increased volume of international trade, rise in the frequency and severity of natural disasters, and the growing need for comprehensive coverage due to geopolitical tensions.
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