Government must prioritise insurance for economic growth, say experts

Insurance experts have called on the Federal Government to enforce compulsory insurances, while leveraging on insurance to grow the economy.

The Chairman, Nigerian Insurers Association (NIA), Mr. Eddie Efekoha, while speaking at Professionals’ Forum organised by the Chartered Insurance Institute of Nigeria(CIIN) in Abeokuta, Ogun State, charged government to embark on enforcement of compulsory insurances, create stricter solvency regulation and implement risk based supervision in insurance industry.

He equally called for review of the insurance act, increase accessibility of credits , while granting tax incentives for some classes of insurance as well as broaden insurance distribution channels in the country.

While canvassing for the creation of employment to increase purchasing power of the citizenry, he charged government to curb the rising inflation, maintaining that there was great hope for the insurance industry.

In the same vein, Director-General, Lagos Chamber of Commerce and Industry (LCCI) Mr. Muda Yusuf called on the Federal Government to use insurance to unlock business opportunities in the country.

Yusuf, while speaking on a radio programme at the weekend, noted that government needs insurance to unlock Small and Medium Enterprises (SMEs) potentials in the economy.

Most SMEs, he pointed out, need finance but can’t access the fund due to lack of credit guarantee which can only be obtained through insurance.

He said insurance remains the best way to obtain secured financial support from banks, adding that no bank would lend credit to any firm without adequate guarantee.

Yusuf urged the government to use insurance to de-risk SMEs, which are presently considered high risk by financial providers.

The much talked about job creation by the government, according to him, can only be achieved through the use of insurance, adding that insurance remains one of the best tools to provide job opportunities in the country.