LASG tasks NAICOM on insurance products for MSMEs

The Lagos State Government has urged underwriting companies in the country to consider providing special cover for micro, small, and medium enterprises (MSMEs).

Gov. Babajide Sanwo-Olu, made the call at a sensitisation workshop on insurance for MSMEs organised by the National Insurance Commission (NAICOM) in the state.

The governor, who was represented by the Commissioner for Finance, Dr. Rabiu Olowo, accepted that MSMEs accounted for about 50 per cent of the nation’s gross domestic product (GDP) and contributed 80 per cent of the employment.

According to him, the state government cannot afford to ignore the challenges confronting MSMEs.

“That is why we describe our MSMEs as very resilient. If you can do business in Nigeria and thrive, there is nowhere you cannot thrive.

“We have launched initiatives and strategies and implemented them towards providing an enabling environment for MSMEs not only to thrive but also to succeed. As laudable as these initiatives are, the sustainability of the anticipated gains cannot be fully guaranteed without a safety net against unforeseen circumstances,” he said.

As a guaranteed approach to protecting small businesses against unforeseen losses and circumstances that may threaten their operations, the governor said insurance policy should be encouraged. He, however, advised insurance companies to ensure that policies designed for MSMEs meet their needs and also address the peculiarities of the industry.

“There should be specially-designed products that meet their categories, incomes, operations, and processes. Such must be affordable and free of technicalities so that they can be easily understood,” he said.

Also speaking, the Commissioner for Insurance, Sunday Thomas, assured that NAICOM was committed to its mandate of providing diligent oversight to the insurance sector towards the prompt settlement of genuine claims when an insured event occurs.

“I dare say that the MSMEs sector is too important to be neglected as it is key to the economic development of the nation and thus must be guided and protected against failure. The encouraging responses validate that the products meet a critical need and that the appetite for players in the MSMEs sector to succeed sustainably is high,” he said.