The second Nigeria-British Chamber of Commerce (NBCC) roundtable for the year 2016
has reviewed the prospects of repositioning Nigeria’s insurance industry to make viable, efficient and sustainable.
It brought together key players in the sector, to critically assess the state of the sector and chart a pathway for its development and expansion in the vast Nigerian economy.
Deputy President of the Nigeria-British Chamber of Commerce Mr Akin Olawore in his remarks said the insurance industry provides immense opportunities for the development and growth of Nigeria’s financial market and economy.
Keynote speaker for the event Godwin Wiggle asserted that despite having 59 insurance companies, 2 reinsurers and 500 brokers, the industry was still fragmented.
Focusing on the topic “Redefining Nigeria’s Insurance Industry in the era of Change”, the resource person believed that the agenda of the present administration had the potency to drive the growth of insurance in the country.
Wiggle who is also the MD/CEO of Linkage Insurance Nigeria noted that the GDP contribution of Insurance to the GDP was still low at 0.3%.
On the composition of the market, he stated that it was dominated by corporate clients adding that despite the current capitalization of about N650bn and gross premium of N300bn, returns are still moderate compared to high growth economies.
Taking a cursory look at some of the key enactments on insurance in the nation, Wiggle listed the major ones to include; 3rd party motor vehicle insurance(1980), insurance act for public buildings(2003), Group Life Insurance for Employees 2004(amended by 2014).
Wiggle identified as some of the challenges facing insurance in Nigeria; lack of a comprehensive database, financial illiteracy, lack of enforcement of insurance laws.
Despite the challenges, the opportunities according to him are enormous ranging from a large population, strong regulatory environment, high entry barrier and even the issue of low insurance penetration.
Giving his outlook and projection for the industry by 2020, the Linkage Assurance Plc boss expressed optimism in the fact that there will be high market capacity, transparency/efficiency, safety and even high level penetration.
At the interactive session, stakeholders agreed that the government had a critical role to play by a clear policy direction for stimulating insurance, while the adoption of technology and increased awareness will be vital to repositioning the market.