By Favour Nnabugwu
The House Committee on Insurance and Actuarial Matters, Hon Rep Darlington Nkwocha said if the insurance industry wished to create great impact in penetration in the country, the sector should focus on nano, micro, small and medium enterprises NMSMEs.
The various segments of enterprises Nkwocha reckoned, will become the hub for insurance retail that will benefit the NMSMEs, the insurance providers and the regulator. Besides, he said Insurance Bill 2020 which he stated is about 70% done by the National legislature will be the bastion to grow insurance beyond limit and at the same time score well in penetration.
The Commissioner for Insurance, Mr Sunday Thomas, said the insurance industry is set to harness the four segments of enterprise that contribute 49% of gross domestic product GDP by providing the insurance protection that fits each segment; ‘nano’ (which was created recently LCCI to segment business that employs between 1-3 persons with a working capital from N1- N1million), micro, small and medium scale enterprises.
Thomas said the insurance input that is coming into the four segments of businesses when the embrace is accomplished, would give this critical section of the economy “the confidence to venture” and consolidate the gains of enterprise.
NAICOM helmsman said insurance protection for the MSMSEs is of utmost importance and its key development intervention of government for economic sustainability that is why the Commission is following set pattern of government to provide the enterprises with the lead to insurance protection it needs.
He speaks further on the importance of importance for the enterprises and the consequences for ignoringHe therefore challenged , “In Nigeria, all development interventions of the current administration have had components focused on enabling these MSMEs sprout and flourish but unfortunately, with little or no insurance content to deal with associated risks and ensure sustainability and guarding them against failure.”
With a close tab on the insurance benefits to the segments of enterprise in focus, the Governor of Lagos State, Babajide Sanwo-Olu, said insurance protection should be accepted as the safety net for unforeseen risks.
Sanwo-Olu said the federal, states including the Central Bank of Nigeria have created policies and incentives to sustain the enterprises in focus to make the economy strong. He therefore, challenged the insurance operators to design products and services that are affordable and understandable. The Governor was represented by the Commissioner for Insurance, Dr, Rabiu Olowo.
The Director General Nigerian Insurance Association, Mrs. Yetunde Ilori, admonished the MSMEs to link their businesses with insurance protection. She comments, “Whatever you cannot afford to loose should be insured.”
In his Introduction: benefits of Insurance to MSMEs, Abdulrasheed Babalola, informed the attendees that insurance protection offers financial protection, boosting production and facilitating access to finance.