We’re On Right Track To Increasing Insurance Density in Nigeria – Fola Daniel

Mr. Fola Daniel, MD/CEO, FBS Reinsurance Limited

The former Commissioner for insurance and Chief Executive Officer of the National Insurance Commission (NAICOM) and the current Managing Director of FBS Reinsurance Limited, Mr. Fola Daniel, is optimistic that with the reinvigoration of the industry through injection of foreign capital and expertise, financial inclusive products, environmentally sensitive and pocket-friendly insurance cover, the industry is on the right track to increasing the insurance density in the country.

He said this while responding to a question on how the industry can shift from the present position of minimal contribution to the nation’s gross domestic product (GDP) to meaningful contribution during an interview with NAIPCO Trumpet in Lagos recently.

According to him, “the minimal contribution of the insurance industry to the nation’s GDP at the moment, is a passing phase. With the reinvigoration of the industry through the injection of foreign capital and expertise, financial inclusive products, environmentally sensitive and pocket friendly insurance covers, we are on the right track to increasing the insurance density in our clime.

“The biggest raw material for insurance growth is the middle class of the society. Our middle class is growing and so are their insurance needs. The government focus on infrastructural development, housing, small scale business empowerment, are the veritable impetus to the growth of the insurance industry.

“It is envisaged that the growth will assume a geometrical progression.”

On the one trillion naira premium benchmark for the industry, he said “the goal remains achievable with the rapid fueling of the economy, focus on the agriculture sector, the exploration of hitherto mineral resources and a growing population, the attainment of industry trillion-naira will be a reality rather than a mirage.

“I believe that the regulator and all the industry players are more determined than before to take the industry to the trillion-naira size and is doable if all the stakeholders play their expected roles diligently. The potentials of the Nigerian insurance market are phenomenal if viewed from the demography, economic resources, and other measurable parameters. The fundamentals are strong to support the sustainable growth of the industry.”