Ebere Nwoji
Insurance expert and Managing Director Prorisk Insurance Brokers formerly Wema Insurance Brokers, Mr. Oluwagbemiga Olawoyin has categorised factors that will aid the growth and development of the insurance sub sector of the economy into endogenous and exogenous factors.
Olawoyin who spoke in an interview with THISDAY in his office in Lagos explained that endogenous factors are things the industry and its operators should do to achieve self improvement while the exogenous factors according to him, are things needed to be done by government to further develop the industy and enhance its contributions to the national economy.
Under endogenous factors Olawoyin said, insurance being a knowledge based profession, the operators should drive human capital development and expertise to be able to handle bigger businesses that would yield more profits to the industry and position the industry to give better returns on investments.
He said currently, the industry is not shareholders' delight because insurance is one of the sub sectors that give minimum returns on investment.
According to him, this being the case, the operators need to work hard to make the industry attractive to both foreign and indigenous investors.
Under exogenous factors, Olawoyin said government has a lot to do to support the industy and enhance its contributions to the national economy.
He said people often say that the insurance industry makes only minimal contribution to the national economy but forgot that among the sub sectors that boast of significant contributions to the economy none does that with out significant support from all levels of government.
According to Olawoyin, insurance is one of the sectors that receives least or no support from government yet it contributes its own quota to the economy.
Describing the insurance industry as a resilient sector that has been able to stand in the face of hostility of Nigerians to the sub sector. The Prorisk insurance brokers boss said if government will give even a finger support to the sub sector, it will fly higher and surpass its counterparts in contributing to the economic growth of the country.
He spoke on the industry's business experience in the current election year saying insurance being part of the economy as a whole,the up coming elections and campaigns, which has slowed down businesses generally did not leave the industry unaffected.
He said the terrorism issue in the country, which has posed big security challenge to the country and devaluation of the Naira supposed to bring more business to the industry.
According to him , in the face of low price of oil , Nigeria being a mono product dependent country is struggling along with every business activity in the country as such there is scarcity of money and acquisition of new assets becomes more difficult.
He said as such , governments, business organisations, and individuals should be more conscious of security of their existing assets and the only way to do this is through insurance coverage.
According to him with the devaluation of Naira, the value of assets are also supposed to go up which he said means more premium for the insurance industry.
Olawiyin however said insurers are yet to experience these gains adding that due to high level of ignorance of value of insurance to Nigerians, insurers are still knocking at their doors with the message of insurance.
He expressed hope that in the nearest future, the industry will begin to realise these hopes.
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