Insurance Underwriters Tasked On Creation Of Insurance Solution For MSMEs
L-R: Director General, Chartered Insurance Institute of Nigeria, Abimbola Tiamiyu; representative of Lagos State Governor, Babajide Sanwo-Olu, Commissioner for Finance, Rabiu Olowo; Chairman, House Committee on Insurance and Actuarial Matters, Darlington Nwokocha; Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM), Olorundare Sunday Thomas; Permanent Secretary, Ministry of Finance, Mrs Ayiola Oyeyemi at the Sensitization workshop for Micro, Small, and Medium Enterprises (MSMEs) organized by the National Insurance Commission (NAICOM) in Lagos yesterday.
Insurance underwriters have been tasked to create products that will meet the insurance needs of Macro, Small and Medium Enterprises (MSMEs) in Nigeria.
The chairman, House Committee on Insurance and Actuarial Matters, Right Honourable Darlington Nwokocha, made the call at the insurance awareness workshop organized by the National Insurance Commission (NAICOM) in Lagos.
He said creation of affordable and acceptable insurance products that meets the needs of the insuring public will encourage acceptance and deepen penetration.
Nwocha said the House is doing everything within their powers to ensure that the Insurance Bill 2020 before the National Assembly which is about 70 per cent completion is completed to ensure full implementation of the compulsory insurances in the country.
The Governor of Lagos State, Babajide Sanwo-Olu who was represented by the Commissioner for Finance, Lagos State, Mr. Rabiu Olowo, while speaking at the event acknowledged that MSMEs which account for about 49 per cent of the nation’s gross domestic product (GDP) and contributes 90 per cent of the nation’s employment needs to be protected against unforeseen occurrence that will jeopardize their operations.
He implored the insurance operators to provide insurance solutions to the MSMEs.
Sanwo-Olu said the state government cannot afford to ignore the challenges confronting MSMEs and threatening their survival and described the sector as “very resilient.
According to him, “our MSMEs as very resilient, if you can do business in Nigeria and thrive, there is no where you cannot thrive” he said.
“We have launched so many initiatives and strategies and are still implemented towards providing an enabling environment for MSMEs to not only thrive but to succeed.”
“As laudable as these initiatives the sustainability of the anticipated gains cannot be fully guaranteed without a safety net against unforeseen circumstances”
As a guaranteed approach to protect small businesses against unforeseen losses and circumstances that may threaten their operations, the Governor stated that securing insurance cover must be encouraged.
He advised insurance companies to ensure that insurance policies designed for MSMEs must meet their needs and also address the peculiarities of MSMEs.
“There should be specially designed products that will meet their category, income, operations and processes such must be affordable and free of technicalities so that it can be easily understood with assurance of settlement of claims,” he said.
”I enjoin all MSMEs in Lagos State to embrace insurance as safety net against losses that might be suffered as a result of unforeseen circumstances,” he urged.
In his welcome address, the Commissioner for Insurance, Olorundare Sunday Thomas, identified MSMEs as critical to national growth.
He assured that the regulatory body, NAICOM is committed to its mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs.
“I dare say that the MSMEs sector is too important to be neglected as it is key to economic development of the nation and thus, must be guided and protected against failure. The encouraging responses validate that the products meet a critical need also that the appetite for players in the MSMEs sector to succeed sustainably is high,” he said.
NAICOM boss who enjoined the MSMEs to be free to approach any of the 59 companies; 510 insurance brokers; four Microinsurance companies and four Takaful companies licensed by NAICOM for an appropriate and adequate insurance policy that meet their needs.
Thomas commended Lagos State government’s effort in ensuring the growth of MSMEs, adding that “Lagos state is a key stop for us for obvious reasons; first, Lagos has been Nigeria’s nerve center of commerce, the State hosts the single largest number of, MSMEs in the country, put at 11.5% of total. (NBS 2019)
“Secondly, and more important, the current and past administrations of this state have demonstrated a continuous commitment to sustaining MSME growth.
“Specifically, the constellation of deliberate polices, special programmes and projects, in collaboration with various agencies to boost capacity, access credit, enable trade are all commendable. Some of the State efforts that readily comes to mind and which have been supportive to the Federal Government efforts are: The Lagos State MSMEs Exclusive Fairs; The N220 billion Micro, and Medium Enterprises Development Fund (MSMEDF) to cushion the impact of COVID 19 and Other State intervention programs.”
In her goodwill message, The Director General Nigeria Insurers Association (NIA), Mrs Yetunde Ilori, said that the era of ‘God Forbid’, ‘It will not happen to me’ has gone adding that one of the main reasons for the workshop is to ensure that entrepreneurs have peace of mind.
“The operators are here to develop products that meet your needs, the regulators are also enacting laws to ensure all parties are considered and we are happy that Lagos state is supporting us on this”, she said.
On the Impact of securing MSMEs, the President of Chartered Insurance Institute of Nigeria, Mr Muftau Oyegunle said that the MSMEs are fundamental at core areas of its operation that is needs to expand.
” We are all open and willing to learn from each other,” he said.
