Insurers move to increase contribution to GDP

Insurance operators in Nigeria are not happy about the level of the industry’s contribution to the nation’s Gross Domestic Product (GDP) as a result of this have come together and resolve to change the narrative.

The contribution of Insurance to real GDP stood at 3.07% as at Q4 2020, lower than the contribution of 3.19% recorded in the fourth quarter of 2019 (Q4 2019) by 0.12% points, but higher than 2.67% recorded in Q3 2020 by 0.40% points.

The immediate past Chairman, Nigerian Insurers Association (NIA), Mr Tope Smart, in an interview, revealed that operators during a retreat talked extensively on issues affecting the industry as well as how the industry can improve her contribution to the GDP just as he called on the industry stakeholders to ensure all hands are on deck.

“We recently held a retreat where we brainstorm and put some ideas together. First, we want to introduce the concept of professionalism and we want it entrenched.

“We have talked about low penetration level. We want to look at how we can increase our contribution to GDP. These are the kind of things we are looking at… And like I mentioned, we have thoroughly debated the issues among ourselves and solutions have been proffered

We discovered that some players don’t play by the rules and have abandoned professionalism just to get business. We want to entrench good ethics as part of the things that will move the industry forward.”

Tope Smart who is also the Managing Director/CEO NEM Insurance Plc said his major concern for the industry is that the industry is not occupying the position it supposed to be as an industry which according to him is why a lot of other industries don’t have respect for the industry because the industry is yet to play a role that is critical and fundamental as an industry.

“One of the reasons why we are not taken seriously is our low contribution to the Gross Domestic Product (GDP).

“It is very insignificant and that is why people tend to look down on the industry as one that is underperforming. This is a very major concern for me which I think we should try to address. We should be able to put insurance in its prime position. Insurance is the bedrock of the economy.

“All these industries can’t survive without insurance. So if insurance is the bedrock of the economy, then why are we not playing our critical role and not being taken so seriously? So it is a major concern for me and I think all the stakeholders in the industry must work together.”