Global economic crisis: insurance remains a help –Experts
By Henri Uche
In the middle of global economic crisis, insurance remains a lasting help for all, including legal persons, to weather the storms following the appearance of the covid-19 pandemic. This was the position of insurance industry experts during the Business Outlook 2022 held recently in Lagos and organized by the Chartered Insurance Institute of Nigeria (CIIN).
These experts argued that while the pandemic has affected all sectors, its upside should not be underestimated as innovation, creativity and adoption have enabled forward-looking individuals and businesses to soar. sharply.
With the theme “Government Economic Policies in 2022: Challenges, Issues and Prospects”, insurance experts postulated that it was ideal for the federal and state government to give the sector all the support it deserves, and very imperative if everyone had a form of one insurance coverage or the other with one insurer in another to minimize the effects of the pandemic. They expressed optimism that the sector will soar in 2022, in line with global forecasts from international experts.
Speaking on “Strategies to cushion the effect of covid -19 on the operations of the Nigerian insurance sector and the way forward,” Insurance Commissioner Sunday Thomas told stakeholders that the National Insurance Commission Insurance (NAICOM) had made a critical decision on the in the aftermath of the pandemic to address the resulting challenges.
According to him, the commission has provided increased visibility for the insurance industry and continued to implement an effective policyholder protection program, improved internal capacity to assess emerging risks, encouraged effective catalysts for managing risks, monitored client satisfaction levels and improved insurance education/awareness among other strategic interventions.
To overcome the challenges posed by the global threat and the way forward, he said, “At this critical time, NAICOM must ensure a risk-based approach to capital, increased investment in digital capabilities and automation, ensuring standardization of reporting, anchoring effective asset and liability management, capacity development programs – actuarial competency framework.
“Creation of the college of insurance supervisors of the West African monetary zone (CISWAMZ), use of modeling for risk assessment and stress tests, strengthening of the recovery and resolution plan, cyber insurance policy and guarantee of context-specific products such as job loss insurance products are offered.There is no doubt that insurance comes to the aid of individuals and legal entities, it is an essential need of humanity,” he said.
In the same session, the Chairman/Chairman of the Chartered Insurance Institute of Nigeria (CIIN), Muftau Oyegunle, was in line with other economic experts who claimed that growth projections for 2022 revealed that demand for insurance would continue to rise around the world and that the industry will be quite optimistic despite concerns about the potential effects of COVID-19 variants.
Oyegunle quoted the Swiss Reinsurance Institute as saying (for the first time in history) that “global insurance premiums will exceed $7 trillion by mid-2022.”
His words: “The national budget, government fiscal and monetary policy, covid-19 and others have all impacted the insurance sub-sector of the economy, hence the need for us to reposition ourselves in the future. There is a need to raise awareness of the sector as it holds enormous untapped potential.
“There is more to explore in the sector, we remain optimistic this year in terms of the growth projection which will come through innovative offers – Products and services”, he envisaged.
For his part, NCRIB Chairman/Chairman ROTIMI EDU implored the federal and state governments to control the insurance racketeers whose activities have caused more than damage in the system.
Edu instructed the Vehicle Inspection Service (VIS) to see this as a clarion call and to increase its enforcement strategies to include the insurance certificate so that motorists without a real insurance certificate automobile are subject to the penalties provided for by law.
“Our economy continues to lag because we are not paying attention to the insurance issue. It was recently reported that the insurance industry in Nigeria loses more than 160 billion naira a year due to a fake car insurance racket.
“It is disheartening that an industry that used to contribute less than 1% to the gross domestic product, despite its huge potential, loses such a huge amount of money to fake sellers who contribute nothing to the growth of the nation. .”