Tuesday, 10 September 2013

Insurer canvasses products for agriculture, informal sector to deepen penetration


Chuks Udo Okonta

Unless insurance products are developed to carter for the needs of the agriculture and informal sectors, the desired penetration would not be achieved, the Group Managing Director Royal Exchange Plc, Chike Mokwunye, has said.

He disclosed this at the 5th Anniversary Lecture/Award of the Business Journal Magazine, in Lagos, adding that poor image/perception, lack of awareness, poor disposable income, nature of insurance business and benefits, concentration on the elite, corporate and institutional clients and traditional, cultural safety nets also contribute to the low level of insurance penetration in the country.

He said: “With the structure of the Nigeria economy where agriculture and the informal sectors are growth drivers and contribute over 60 per cent of the Gross Domestic Product (GDP) the integration of these sectors into the financial system and the development of insurance products and channels to the market that would carter to their needs are a necessity if reasonable insurance penetration is to be achieved.”    

He called on the media to join hands with the insurance industry to promote awareness and education, stressing that the media has immense role to play in building the needed awareness lacking in the industry by partnering with operators.

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