The Tide
The Director General, Nigerian Insurance Association (NIA) Mr Sunday Thomas, has said that insurance is the pivot of the nation’s economic growth and development.
Thomas stated this in Lagos while presenting a paper on the topic “Sustaining Infrastructural Development and Transformation Initiatives of the nation through mourance”.
He said insurance has played an important role in sustaining growth and providing long term funds for infrastructure financing.
He urged government to provide necessary platform needed to create the conditions for promoting the entry of long term institutional investors that could provide the private capital for infrastructure development.
According to him, the Nigerian Insurance Industry has a key role to play in contributing to the nation’s economic growth as a risk transfer and management mechanism, growth driver for other sectors of the economy and a huge potential for direct and indirect labour employment.
He said insurance firms are providers of long term capital investments needed for infrastructure projects to help drive a competitive healthy and robust national economy.
He said there is huge benefit in insurance potential as a mechanism for sustaining infrastructural development and transformation initiative of the nation.
The NIA boss said the insurance sector especially life insurance of the financial system is a major instrument for the mobilization of savings of people particularly from the middle and lower income groups, stressing that these savings are channelled into investment for economic growth.
He said that while insurance companies could act as institutional investors, they should however not be forced into these investment adding that such investments should be made on a risk return basis and being mindful of the investors liquidity needs.
Thomas explained that one of the major impediments of the insurance sector to long term investment in less liquid assets such as infrastructure is investment limit either regulatory constraints.
Thomas stated this in Lagos while presenting a paper on the topic “Sustaining Infrastructural Development and Transformation Initiatives of the nation through mourance”.
He said insurance has played an important role in sustaining growth and providing long term funds for infrastructure financing.
He urged government to provide necessary platform needed to create the conditions for promoting the entry of long term institutional investors that could provide the private capital for infrastructure development.
According to him, the Nigerian Insurance Industry has a key role to play in contributing to the nation’s economic growth as a risk transfer and management mechanism, growth driver for other sectors of the economy and a huge potential for direct and indirect labour employment.
He said insurance firms are providers of long term capital investments needed for infrastructure projects to help drive a competitive healthy and robust national economy.
He said there is huge benefit in insurance potential as a mechanism for sustaining infrastructural development and transformation initiative of the nation.
The NIA boss said the insurance sector especially life insurance of the financial system is a major instrument for the mobilization of savings of people particularly from the middle and lower income groups, stressing that these savings are channelled into investment for economic growth.
He said that while insurance companies could act as institutional investors, they should however not be forced into these investment adding that such investments should be made on a risk return basis and being mindful of the investors liquidity needs.
Thomas explained that one of the major impediments of the insurance sector to long term investment in less liquid assets such as infrastructure is investment limit either regulatory constraints.
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