Allianz Offers Peace Of Mind To MSMEs In Uncertain Times
Insurance penetration and patronage in most developed countries of the world especially in Europe, Asia and America have grown consistently over the years. This is largely due to the support from the government and a focus on small businesses for sustainable development and stability.
Small businesses contribute immensely to the economic growth of any country while creating employment opportunities and building the financial strength of the economy. In Africa, though the interest is still very low, South Africa, Kenya and Egypt are front runners in this segment on the continent.
In Nigeria on the other hand, the insurance penetration is less than 1% to Gross Domestic Product (GDP) despite the increasing awareness and sensitization programs by the government and other stakeholders. There is still a lot to be done to push this sector beyond its current state.
A recent survey reveals that Micro, Small and Medium Enterprises (MSMEs) contributed about 48% to GDP in the last five years with over 50% employment and 90% contribution in the manufacturing industry respectively.
Though, Nigeria is largely dependent on importation there is still huge potential when it comes to business value chain in various sectors and sub-sectors of the economy which has given rise to the number of MSMEs in Nigeria today.
The report shows that there are over 42 million MSMEs and the number continues to increase as young Nigerians embrace entrepreneurship. As interesting as this might sound, the insurance patronage experienced from the MSMEs in Nigeria is next to nothing, offering no buffer in uncertain times.
Business Sustainability and Funding:
MSMEs are usually faced with financial challenges which constantly affect their operations, leading to their closure. In the wake of the one year anniversary of the #EndSARS protests, it is important to re-emphasize the importance of Insurance to the MSME industry and the Nigerian economy at large.
In its aftermath, statistics released revealed a loss of confidence in the economy by foreign investors as franchises such as Shoprite/Spar were badly affected. This resulted in job losses further worsening the unemployment crisis in the country.
Banks who gave out loans were badly affected, as loans to affected businesses had to be written off. Not only did several states groan under the financial strain of rebuilding damaged public assets, but a good number of MSME’s without insurance are also yet to return, one year afterwards.
In Allianz Nigeria, we have taken a keen interest in this sector; paying claims promptly and consistently leveraging opportunities in this space to create lasting risk management solutions that would help these businesses properly manage risks and remain in business rather than go bankrupt when the unexpected happens.
Our vision is to help entrepreneurs and small to medium enterprises grow their businesses inspiring them to create the next generation of global brands. We support SME’s by providing periodic risk analyses of our operating environment. This is highlighted in the Allianz Risk Barometer result which is published yearly. We provide industry-specific news, trends, insights and data that helps business take critical decisions based on the realities of their current business environment. We analyze the most pressing issues and outline how entrepreneurs and businesses can do the right thing to avoid such risks and losses. We also collaborate with like-minded individuals to give a complete suite of support for businesses to thrive.
Allianz continues to be the world’s most valuable insurance brand, according to the 2021 Best Global Brands ranking, released by leading consultancy Interbrand. Within the top 100 global brands, Allianz has climbed five ranks since 2020 to #34. Allianz’s brand value has risen by 2.2 billion USD in one year to 15.2 billion USD, an increase of 17 per cent. This increase is the strongest since Allianz entered the 100 Best Global Brands ranking in 2007 with a brand value of 4.0 billion USD. According to Interbrand, Allianz’s rise in the ranking is based on its strong operating performance and outlook, increased branded revenue, and brand strength. Moreover, the influence of the Allianz brand on customers’ purchase decisions has increased over the last year.
Interbrand pioneered the brand valuation concept in 1988. It was the first company to have its methodology certified as ISO 10668 (requirements for monetary brand valuation) compliant and it played a key role in the development of the standard itself. Since 2000, the Best Global Brands ranking and report has been published annually and is one of the most recognized rankings in brand management.
