The traction in the insurance industry remains undaunted and the recent upsurge in policy directions has proved it. Just after the unveiling of a three-tiered recapitalisation plan for the industry, the National Insurance Commission (NAICOM) explained that it has already mapped out development strategies that would accommodate about 40.1 million adults in the rural areas that are excluded from any form of financial services across the country.

The development portends a huge opportunity for the sector, especially, as it would move the industry towards the N16 trillion total asset base target for year 2020, if actualized. But this could only be realisable if the industry’s potentials are well harnessed alongside the plan.

“Such target mandates industry stakeholders to harness all potentials that were hitherto lying fallow. There are still many risks that are yet to be insured.

“Insurance practitioners have not been able to flood the market with enough risk covers and this is a major reason researchers described the Nigerian insurance sector as grossly untapped, with less than one per cent of Nigerian housewives having insurance cover, even though the industry had been in existence for close to a century,” NAICOM chief, Mohammed Kari, said.

Giving the indication in a paper delivered during the Nigeria Council of Registered Insurance Brokers (NCRIB) forum in Uyo, Akwa Ibom State, Kari said statistics have it that the Nigerian adult population, which consists of people from 18 years and above, is 96.4 million, out of which 59.6 million are living in the rural areas.

But Kari explained that among the rural populace, 40.1 million are excluded from any form of financial services, adding that the Nigerian formal sector provides income to only 7.9 million adults, representing 4.2 per cent, whereas 41.6 per cent are excluded from financial services, particularly, insurance.

According to him, this offers a huge opportunity for “the future broker” to provide desirable services to close these existing gaps and enhance the general performance of the industry.

He said that in the past five years, the Gross Written Premium of the industry has hovered between N300 billion and N320 billion, which is evident of the fact that the figures are not growing in the same proportion, if the enormous potential at the disposal of the sector is to be used as benchmark.

“Nigeria, according to the 2017 world population records, is designated as the seventh most populous country in the world, accounting for 2.6 per cent of the world population. Again, Nigeria is the 21st largest economy of the world in Gross Domestic Product (GDP) terms and the largest economy in Africa”, he noted.

Kari said that a cursory overview of the access to financial services in Nigeria indicates that there is a huge deficit in terms of financial inclusion, which insurance is a veritable part, but missing great opportunities.

He averred that statistical analysis indicates that Nigeria requires aggressive and strategic developmental efforts towards reaping the benefits of its abundant potentials, and that this has become an imperative, rather than an option, if ordinary Nigerians who have no access to financial services must be brought to the fold.

“For us at NAICOM, let me re-emphasise our commitment towards driving the Nigeria insurance industry to greater heights by providing strategic and far reaching regulatory frameworks and market development initiatives in accordance with extant laws and best practices.

“The Commission, specifically introduced Microinsurance, including Takaful products in the country, as an attempt to address the identified existing gaps to aid penetration and reach the segment of the market that was either hitherto unreached or not comfortable with the conventional insurance products.

“The decision to create additional channels for insurance distribution is also in this light. We are equally optimistic that the expanded distribution channels will in no distant time aid the penetration of insurance in Nigeria and subsequently lead to a substantial leap in the contribution of insurance to the nation’s Gross Domestic Product (GDP)”.

The insurance expert said that with the recent climatic changes and the menace of floods, storms and outbreak of diseases to the country’s agricultural produce and livestock, NAICOM is poised to improve its regulatory and supervisory framework.

By Dotun Roy is a development driven news website with the overall goal of amplifying, promoting and advocating for positive societal change through Sustainable Development advocacy in line with UN SDGs components such as education, environmental sustainability and Climate Change, Human Rights, health, finance, housing, good governance as well as security in Nigeria and across the world.

47 thought on “Insurance inclusion policy for 40m adults in rural communities”
  1. You could definitely see your expertise in the work you write.
    The sector hopes for more passionate writers like you who aren’t afraid to
    mention how they believe. All the time follow your

  2. Thank you for another wonderful post. Where else may anybody get that type of info in such
    an ideal approach of writing? I’ve a presentation subsequent week, and
    I’m on the look for such info.

  3. My partner and I stumbled over here different web address and thought I might as well check things out.
    I like what I see so i am just following
    you. Look forward to looking into your web page yet again.

  4. Excellent goods from you, man. I’ve understand your stuff previous
    to and you’re just too wonderful. I actually like what you’ve acquired
    here, really like what you’re stating and the way in which
    you say it. You make it enjoyable and you still care for to keep it smart.
    I can’t wait to read much more from you. This is actually a
    wonderful website.

  5. Having read this I thought it was really enlightening.

    I appreciate you finding the time and energy to put this content together.

    I once again find myself personally spending way too much
    time both reading and commenting. But so what, it
    was still worthwhile! plenty of fish natalielise

  6. Have you ever considered publishing an e-book or guest authoring on other blogs?
    I have a blog based upon on the same topics you discuss and would love to have you share some stories/information. I know my visitors would value your work.
    If you are even remotely interested, feel free to send
    me an e-mail.

  7. Excellent post. I was checking continuously this
    weblog and I am impressed! Very useful info specially the final section 🙂 I take care of such info much.
    I was seeking this certain info for a long time.
    Thank you and best of luck.

  8. I am not sure where you’re getting your info, but
    great topic. I needs to spend some time learning much more or
    understanding more. Thanks for great info I was looking for this information for my mission.

  9. [url=]874[/url], [url=]477[/url], [url=]739[/url], [url=]113[/url], [url=]205[/url], [url=]743[/url], [url=]903[/url], [url=]172[/url], [url=]467[/url], [url=]440[/url]

  10. Hey There. I discovered your weblog the use of msn.
    This is a really neatly written article. I will make sure to
    bookmark it and return to read extra of your helpful information. Thanks for the post.
    I’ll certainly return.

  11. Woah! I’m really enjoying the template/theme of this site.

    It’s simple, yet effective. A lot of times it’s hard to get that “perfect balance”
    between user friendliness and visual appeal. I must say that you’ve done a fantastic job with this.
    In addition, the blog loads very fast for me on Opera. Superb Blog!

  12. I was suggested this web site by my cousin. I am now not positive whether or
    not this post is written through him as no one else recognise such targeted about my problem.
    You’re incredible! Thanks!

  13. Heya i am for the first time here. I came across this board and I
    find It truly useful & it helped me out much. I hope to give something
    back and help others like you helped me.

  14. hello!,I like your writing so so much! percentage we keep
    in touch more about your article on AOL? I need an expert in this space
    to resolve my problem. Maybe that is you!
    Looking forward to look you.

  15. Wow, wonderful blog format! How long have you ever been running a blog for?
    you made blogging look easy. The total glance of your site is excellent, as
    neatly as the content material!

Leave a Reply

Your email address will not be published.

Social Media Auto Publish Powered By :

Enjoy this blog? Please spread the word :)