Ogunbiyi calls for government support, patronage for Insurance industry

From left: Mr. Tokunbo Bello, Executive Director, Cornerstone Insurance Plc; Mr. Agudah Oguche, Chief Executive Officer, Pension Fund Operators Association of Nigeria (PenOp); Mrs. Idu Okwuosa, Managing Director/CEO, Access Pension Fund Custodian Ltd; Mr. Austin Enajemo-Isire, Chairman, Nigeria Social Insurance Trust Fund (NSITF); Mr. Sola Adeseun, Ag Head, South-West Zonal Office, National Pension Commission, and Mr. Fatai Adegbenro, Executive Secretary, the Nigerian Council of Registered Insurance Brokers, at the 5th NAIPCO national Conference, on Bankable Investments Portfolio For Insurance, Pension Sectors in Lagos Wednesday,4th of November, 2020.

Chairman, Mutual Benefits Assurance Plc, Dr. Akin Ogunbiyi, has called on government at all levels to support and patronize the Nigerian Insurance industry to achieve its objective, support the nation’s economy, ensure returns on investments as well as achieve capital adequacy.

Dr. Akin Ogunbiyi made the call at the 2020 National Conference of the National Association of Insurance and Pension Correspondents (NAIPCO), with the theme “Promoting Bankable Investments Portfolio for Insurance and Pension Sectors, In Lagos recently.

He said the industry can achieve adequate return on investment and capital adequacy ratio through support and patronage of the Nigerian Insurance industry by government at all levels and also by ensuring reduction of sharp practices to its barest minimum.

While noting that the industry can accumulate retain earnings and shareholders funds on a sustainable basis through good corporate governance and adaptive leaders that recognize and respond to insurance needs and relevant adjacencies, he said the industry also require commitment and dedication from all of us to achieve survival, growth and profitability.

Ogunbiyi who was the NAIPCO website Chief Launder, said the Financial assets such as debt and equity instruments as well as money market and equity funds are returning low yield, adding that as a result of the prevailing not too favourable investment climate, capital preservation yields are not as profitable as before.

He noted that though inflation at 13.9 percent, one loses money in real terms as Fixed income may guarantee cash flows, but with negative profitability.

His words: “How then do we guarantee adequate return on investment in the Insurance Industry? Can the new regulatory-induced recapitalization guarantee it? If the worth of a company is a function of its performance, will there be a positive correlation between recapilisation, growth and profitability?

“I want to submit that we can achieve adequate return on investment and capital adequacy ratio through:

“Support and patronage of the Nigerian Insurance industry by government at all levels and Reduction of sharp practices to its barest minimum
We can accumulate retain earnings and shareholders funds on a sustainable basis through good corporate governance and adaptive leaders that recognize and respond to insurance needs and relevant adjacencies.

“We require commitment and dedication from all of us to achieve survival, growth and profitability.”