Insurers Charged to Increase Contribution to GDP

By Sola Alabadan

The various arms of the Nigerian insurance industry have been charged to set up a committee to develop a more dynamic strategy in deepening insurance contribution to the nation's Gross Domestic Product (GDP).

This formed part of the communiqué issued at the recently concluded 22nd Professional Forum of the Chartered Insurance Institute of Nigeria (CIIN) in Abeokuta, Ogun State.

As the contribution of the insurance sector to GDP dropped from 0.7 to 0.6 per cent with the rebasing of the economy, the operators agreed that this development calls for more dynamic strategies to deepen insurance reach amongst the vast populace so that the insurance industry can make meaningful contribution to the nation's economy.

The participants appreciated the efforts of the CIIN in promoting insurance education at secondary and tertiary institutions in the country, saying this will go a long way in increasing the level of insurance penetration and as such should be supported by the market operators.

The insurance industry was also enjoined to key into the government's policy of promoting financial literacy through aggressively promotion of micro insurance and takaful insurance products.

Besides, the insurance operators were told to work towards the use of major Nigerian languages especially for micro insurance products.

While commending the operators that had entered into partnership with telecommunication companies for the selling of insurance products, the forum resolved that more companies should develop products which could also be sold through such platform.

In realisation that financial inclusion is achieved when adults have easy access to broad range of financial products designed according to their needs and provided at affordable cost, the insurance operators were urged to work towards developing programmes that will facilitate insurance literacy among the people.

The market operators were equally advised to put in place machinery for growing the insurance business in Nigeria through service centred mass production of insurance products and mass marketing of the products.

Since the people are the most important assets of an organisation, the trade arms of the industry were encouraged to persuade their members to regularly develop this asset in the organisation for the good of the entire industry.

Apart from ensuring that only fit and proper operators are licensed and remain in practice, the National Insurance Commission (NAICOM) was asked to ensure that fake insurance transactions are eliminated in the market.




Source: Daily Independent