2017 budget implementation to drive insurance activities, say brokers

By Abdul Olalekan

Insurance brokers in the country said insurance industry was awaiting the implementation of the 2017 national budget to drive insurance activities in the current year, following a tough operating environment in 2016.

Speaking on behalf of the brokers in an exclusive interview with Business 247 News Online in Lagos, President, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Kayode Okunoren, said with 2017 national budget making much provision for capital expenditure, the industry expects a better operating environment in the current year.

“A lot of work is expected to be done in the area of Works and Housing this year and that should automatically translates to infrastructural development.  However, we are hoping that this will enhance more businesses for insurance industry and the broking fraternity in particular,” he pointed out.

He stated that if the budget was properly implemented with accountability and transparency, which is the trust of office of President Muhammadu Buhari’s administration, he believes there is a silver lining on the orison for insurance operators as well as the brokers.

Speaking on the operating environment last year, he said 2016 was a trying year for everybody, including the insurance brokerage industry.

Businesses, he said, were not renewing their insurance policies as they used to and those who renew theirs are doing so on an existing basis most of the time.

“So, there was a drop in income for most brokers, even as the value of Naira has greatly depreciated. Obviously, this is also affecting the kind of insurances the general public buys and, by implication, it has reduced the activities of insurance broking, thus, affecting the overall turnover of various insurance broking outfits,” he stressed.

He, however, hopes that Nigeria, as a country, will exit recession in the current year as predicted by the World Bank.