Insurance operators and stakeholders in Nigeria have been urged to reposition the sector as a key driver of sustainable economic growth in the country.
The charge was made by the Managing Director/Chief Executive Officer, Stanbic IBTC Insurance Limited, Mr. Akinjide Orimolade, in his Keynote Address at the 2024 Business Journal Annual Lecture themed: “Repositioning the Insurance Industry to Drive Sustainable Economic Growth in Nigeria,” in Lagos yesterday.
Highlighting the myriad role of the insurance as the stabiliser and sustainer of the economy Orimolade also reckoned insurance place in risk management, capital mobilisation, financial stability, employment generation, consumer protection, promotion of trade, and social stability. Orimolade, who was represented by Mrs. Temitayo Sogbola, MD/CEO of RiskTech & Advisory, emphasised the need for the repositioning of the sector to play these roles gallantly.
“Repositioning the sector as a key driver of sustainable economic growth in Nigeria is essential to address current challenges. This is achievable through innovative solutions, regulatory reforms, and collaborative partnerships. By focusing on increased awareness, product innovation/ diversification, and technology, the insurance sector can become a powerful tool for financial inclusion, economic stability, and long-term sustainable economic growth. With the right policies and industry practices, insurance can play a vital role in Nigeria’s journey towards becoming a more resilient, inclusive, and prosperous economy,” the Keynote speaker emphasised.
He listed three pathways through which the insurance sector contributes to sustainable economic development: households, the private sector, and the public sector.
He said the insurance sector need to have the right mix of the internal and external initiatives. The first are initiatives performed within the organization impacting employees, internal processes, policies, and procedures while the second are initiatives performed by the organization impacting the society and their brand image, to generate revenue.
He holds the view that the sector needs to “Develop culturally sensitive products that resonate with Nigeria’s diverse population, such as the expansion of micro-insurance tailored to informal sector workers Use data analytics to better understand customer behaviour, price risks accurately, and design more responsive products.
Spear heading for growth in the sector, he craved for collaboration with banks, fintech, and microfinance institutions to distribute insurance products. For example, bundling insurance with loans or savings accounts can increase penetration. In addition he demands an ethical industry culture where customer interests are prioritized to rebuild trust.
On the Sustainable Development Goals (SDGs) he said, “Insurance companies can have an impact on climate change through their role as investors in companies,” Other addons include strong impact in claims obligation, expanding and providing Health Insurance to a larger share of the population. Health insurance also helps to reduce out-of-pocket expenses; and making microinsurance the lifeline that reawakens the larger population to withstand economic losses due to illness, property damage, or death of a wage earner.
Featured picture, L-R: Mr. Kunle Ahmed, Chairman, Nigerian Insurers Association (NIA); Mrs. Temitayo Sogbola, rep. Mr. Akinjide Orimolade, MD/CEO, Stanbic IBTC Insurance Ltd; Mr. Tope Smart, Group Chairman, NEM Insurance Plc; Prince Cookey, Publisher/Editor-in-Chief, Business Journal Media Group; Ms. Adetola Adegbayi, Founder/CEO, Mutual Specialists Ltd; Mr. Godwin Agbananye, rep. Dr. Adaobi Nwakuche, MD/CEO, Veritas Kapital Assurance Plc; Lolo Idu Okeahialam, Former MD/CEO, Access Pension Fund Custodian Ltd and Sir Muftau Oyegunle, Former President of CIIN at the Business Journal Annual Lecture 2024 in Lagos yesterday.
