Nigeria’s insurance industry must have the proper framework in place to grow and prosper, as well as to take the lead in Africa.
According to the News Agency of Nigeria, President Muhammadu Buhari made the announcement at the recent 47th Africa Insurance Organizations (AIO) Conference in Lagos.
There is a big future for African insurers, according to Buhari, who called on them to take advantage of federal government initiatives to expand the non-oil sector by introducing new products and services.
When it comes to the war against Coronavirus, President Buhari has thanked the medical and paramedical communities for identifying with the government by offering life insurance packages to frontline workers.
As he pointed out, the insurance industry will play a critical role in economic diversification by providing “required stability, economic sustainability, income generation, job creation, and financial inclusivity.”
“There is a great future for the Insurance industry in Africa. We only need to put the right mechanism in place for it to thrive. I assure you that this administration has and will continue to support insurance growth in Nigeria and Africa at large.
“I commend the leadership of the AIO for the resilience, foresight and perseverance in ensuring that the African insurance market strives to meet its expectations in the global market notwithstanding the prevailing challenges,”
He said, “Nigerian financial services companies, especially banks, are already in many African countries, the likes of Zenith, Access, UBA.
“How about insurance companies? We should now be looking at developing homegrown international African insurance conglomerates. The time is now.”
Osinbajo tasked insurance companies on the continent to leverage the African Continental Free Trade Area (AfCFTA) to increase productivity, adding that every smart economic grouping, whether governments or businesses, must be thinking, planning and strategising for these new times.
According to the vice president, there will obviously be opportunities for new insurance products and solutions, especially, in the property and casualty segment of the business.
He listed the opportunities inherent in the AfCTA for the insurance sector, saying more trade in goods will mean greater need for insurance services.
Osinbajo said brokers, in particular, should expect a boom; demand for trade facilitation services will rise, but obviously companies that already have market presence in other African countries, even if by collaboration, will benefit more than others.
Osinbajo noted that insurance companies must also be prepared for the systemic nature of climate-induced damage, with the possibilities of market failures and more system-wide destabilisation.