Operators seek greater role for industry to boost economic growth


Insurance operators have called on government at all levels and the private sector to support the industry to play its role in carrying enormous risks in the economy.

The Managing Director/Chief Executive Office, Anchor Insurance, Mayowa Adeduro, said given ongoing efforts to grow the economy and deliver democracy dividends to the teeming population, the insurance industry should be supported for it to fully achieve its growth enhancing potential.

He said: “We should all join hands, government at all levels and the private sector should support the industry to perform its highly indispensable role in galvanising the economy.

“It has been proved statistically and economically that there is significant relationship between insurance development and economic growth. Insurance provides vital support for emerging economies and helps in an indispensable manner to achieve growth targets. Also a strong and competitive insurance industry not only enhances growth, it substantially mitigates critical challenges on the path of sustainable economic development.”

According to him, insurance makes economic activities possible and contributes directly to its growth. For instance, through its risk transfer and indemnification services as well as the essentially value-adding financial intermediary services, insurance guarantees productivity improvement, production efficient enhancement and increase in investment opportunities. Also, insurance institutional monitoring benefits provide valuable administrative services to business such as risk management.

Regrettably, Adeduro said Africa’s share in the global insurance market is paltry 1.5 per cent with South Africa contributing nearly 74 per cent. Insurance contributes close to 15 per cent to Gross Domestic Product (GDP) while in Nigeria; we are less than one per cent.

“Insurance plays a positive and very significant role in employment generation. The machinery of insurance through its value adding activities generates a sustained increase in employment and income. In our determination as a country to grow the economy, we must do something that utilises our strengths and delivers benefits to our teeming population.”

According to him, “Let us cultivate “the seeds of insurance, water them, feed them and they will blossom into wonderful achievements. Besides, Insurance penetration is the ratio between insurance premium written and gross domestic product, then let us collaborate to grow these penetration ratios in order to bring them very close to expected values.”