Insurers rule out sack of workers over economic headwinds

Amid retrenchment of workers in different sectors of the economy as a result of economic headwinds occasioned by foreign exchange scarcity and falling oil revenue, the insurance industry says it is not contemplating such, but instead strategising to expand reach in the economy.

The industry under the umbrella body of the Nigerian Insurers Association (NIA) said its focus was to increase penetration so that as many Nigerian’s as possible could embrace insurance.

“Insurance is the last hope of the economy because we are here to protect other businesses through effective risk management, and so, it would mean danger for the economy if insurance industry engages in mass sack of workers,” NIA said.

In the last few months, key sectors’ including banking and manufacturing has engaged in retrenchment of workers, blaming it on tough economic environment as well as impact of Treasury Single Account (TSA) on their operations.

GUS Wiggle, chairman of the Nigerian Insurers Association who gave the assurance during an interactive session with the Media in Lagos said though the insurance industry is feeling the heat of the economy like other sectors, it was not considering sacking of workers.

Rather than sack workers, “Our strategy is to continue to engage the public on the benefits of insurance because the more people we insure, the stronger the companies to withstand economic shocks, meet their obligations as well as give returns to shareholders, Wiggle said.