Insurance brokers, under the auspices of the Nigerian Council of Registered Insurance Brokers (NCRIB), have said addressing the challenges of the insurance sector in the country requires collaboration between the federal government and the insurance industry to enhance public safety and economic stability.
Addressing newsmen yesterday in Abuja during the monthly professional forum, the vice chairman of the Abuja Area committee of NCRIB, Ojo Babajide Richard, said the gathering serves as a platform to review current trends in the insurance industry and enhance the capacity of its members through training and professional development.
He noted that the industry faces several challenges, particularly in terms of capacity. Building capacity involves strengthening the robustness of insurance companies and enhancing education within the field.
He stressed that the government has been taking steps to bolster the capacity of insurance companies, but more needs to be done to integrate insurance education into institutions and support professional development post-graduation.
Richard emphasised that addressing these challenges requires collaboration between the government and the insurance industry.
He said with the current insurance penetration in Nigeria being very low, both sectors have significant roles to play.
He said that synergies will yield better outcomes for the Nigerian public.
“My message to Nigerians is that insurance is essential and should not be viewed merely as a compulsory obligation.
It should be an integral part of their financial planning and budget. When insurance is part of their routine, they will benefit from the protection it offers, especially when claims arise,” he said.
He also said cargo insurance is vital and continuously evolving, saying a recent incident in the United States highlighted new perspectives and emphasised the importance of cargo insurance, not only within Nigeria but also on an international scale.
He said that given cargo and marine insurance are internationally regulated, staying updated with global trends is essential.
Also speaking, the vice chairman of Multi Trade Insurance Broker Ltd., David Akuboh, said to improve the situation, the government must focus on enforcement. Although there is awareness about the importance of insurance, many still choose to ignore it.
He stated that this is evident in the health and life insurance sectors, where a significant number of individuals, including motorcycle and car owners, remain uninsured despite the legal requirements.
He added that marine insurance is not only crucial but statutory in Nigeria. By law, all imports into the country must be insured locally. Insurance serves as a guarantee and provides peace of mind, making it an indispensable practice for those in the industry.
Akuboh said challenges in the industry often stem from a lack of compliance. He said many people attempt to bypass the requirement, ignoring the potential consequences of inadequate insurance coverage.
Also, the managing director of Enterprise Life Nigeria, Funmi Omo, highlighted the significant role of insurance in economic stability and personal financial security. She argued that understanding insurance from a young age could help demystify the industry and promote a culture of risk management.
She further said stakeholders in the education and financial sectors have been encouraged to collaborate on developing a comprehensive curriculum that covers various aspects of insurance, including life, health, property, and auto insurance.
Omo stressed that by embedding insurance education within the junior secondary school syllabus, the broker hopes to cultivate a generation of financially savvy individuals who can effectively navigate the complexities of personal and professional financial planning.
She stressed that early exposure to the principles of insurance would equip students with essential knowledge to make informed financial decisions in the future.
