Insurance Growth: Gov Sanwo-Olu Applauds NAICOM, Heirs Group, Promises Support
The Governor of Lagos State, Mr. Babajide Olusola Sanwo-Olu has applauded the effort of Mr Olorundare Sunday Thomas’ led National Insurance Commission (NAICOM) for ensuing insurance industry’s growth and Tony Elumelu’s Heirs Group for venturing into insurance business to improve the nation’s economy.
Governor Sanwo-Olu made the commendation in his remarks at the formal launch of Heirs Insurance Limited and Heirs Life Assurance Limited in Lagos recently.
While acknowledging the efforts of NAICOM, the Governor said “it is important for us to thank them for holding forth because at some point in time the sector was shaky. But with Mr. Thomas and the assurances he’s given us and the direction they have set in the last year or so for that sector, I think the dark days are behind them and we have seen a lot of improvements and better acceptability in that sector. We can assure you that as a government, we would continue to be an insurance complaint government because we fully understand how critical to de-risk all of the variables and be able to stand.
“I think the least we can do is to reposition ourselves as a government and as a people, especially in the private sector. When we have businesses being set up to add freshness in our economy, the least we can do as a government is to offer encouragement,” we need to encourage the private sector because they are the real engines of growth.”
He added that government alone cannot do everything and that the country needs private sector support to boost the economy. “And the private sectors are the real engines of growth, they are the ones that can create opportunities for our businesses, they are the ones that can indeed grow the GDP. I’m aware that the insurance industry had a bit of a shake at the end of last year because they asked all operators to increase their share capital. I’m aware that both Heirs Insurance and Heirs Life are some of the most liquid and well-capitalized insurance companies in the country right now.”
He called on all efforts to be on deck to develop Nigeria’s insurance industry to meet the levels as it is in other advanced economies in the world to ensure a significant contribution to the nation’s GDP.
The NAICOM boss, In his speech charged the board and management of the two insurance Companies to operate under strict complaint to the industry’s corporate governance guidelines and directives.
Thomas who also expressed optimism that Heirs Insurance Limited and Heirs Life will add value and help to build a new insurance sector that is poised to de-risk other sectors of the national economy said “the timing of this launch could not have been more auspicious in view of the fact that the NIACOM has been rolling out various developmental initiatives aimed at deepening insurance penetration in the country, with the level of capitalization of Heirs Insurance and Heirs Life, I have no doubt that the Nigerian insurance market is poised to write big-ticket risks, we want to minimize outflow and conserve foreign exchange for national development,” the NIACOM commissioner said.
He said the independence of the board and its committees including ensuring adequate disclosure and transparency and strict compliance with regulatory requirements are expected.”
In his address at the occasion, the Chairman of Heirs Group, Tony Elumelu, said that both firms will boost the insurance industry contribution to the Gross Domestic Product (GDP).
He said the entrant of the two companies is set to change the nation’s insurance landscape for the better.
According to him, “To the general public, we believe that our economy is the biggest economy in Africa, yet insurance to GDP is almost insignificant we need to work with the regulators, the finance minister, with all stakeholders to make sure that insurance to GDP in the country becomes respectable like in South Africa and on other economies where insurance companies own even banks, here it is not the case, we need to, we can’t remain like this.”
