Yemisi Izuora
The Managing Director/Chief Government Officer, Stanbic IBTC Insurance coverage Restricted, Mr. Akinjide Orimolade, has advocated for pressing repositioning of the insurance coverage sector to allow it assist in driving the economic system.
Orimolade, dropped the cost in his Keynote Tackle on the 2024 Enterprise Journal Annual Lecture themed: “Repositioning the Insurance coverage Trade to Drive Sustainable Financial Development in Nigeria,” in Lagos.
Highlighting the function of the insurance coverage trade in driving financial sustainability to incorporate bettering danger administration, capital mobilisation, monetary stability, employment era, client safety, promotion of commerce, and social stability, Orimolade, who was represented by Mrs. Temitayo Sogbola, MD/CEO of RiskTech & Advisory, emphasised the necessity for the repositioning of the sector to play its roles effectively on this regard.
“Repositioning the sector as a key driver of sustainable financial progress in Nigeria is important to handle present challenges. That is achievable by way of modern options, regulatory reforms, and collaborative partnerships.
“By specializing in elevated consciousness, product innovation/ diversification, and expertise, the insurance coverage sector can change into a robust device for monetary inclusion, financial stability, and long-term sustainable financial progress. With the precise insurance policies and trade practices, insurance coverage can play a significant function in Nigeria’s journey in the direction of changing into a extra resilient, inclusive, and affluent economic system,” the Keynote Speaker emphasised.
He listed three pathways by way of which the Insurance coverage sector contributes to sustainable financial growth: households, the non-public sector, and the general public sector.
“Households: Financial savings/Investments, Decrease Out-of-pocket bills for healthcare, Healthcare, and Paying off a borrower’s excellent debt.
“The Non-public Sector: Entry to credit score, Agriculture Growth, and Innovation.
“Public Sector: Gross Home Product (GDP)/Financial progress, Job creation/employment, Discount of economic loss, Financial savings, Allocation, Property and Liabilities Administration, Fiscal area in case of pure disasters, Complement, and exports/imports,” he defined.
He spoke on the interior and exterior initiatives of the insurance coverage sector in sustainable financial growth.
In keeping with him, inner initiatives “are initiatives carried out inside the group impacting workers, inner processes, insurance policies, and procedures. Such initiatives embrace Decreasing carbon footprint by way of varied initiatives corresponding to Course of automation that reduces paper utilization and the Introduction of Photo voltaic/Gasoline into the power combine.
“Folks and Tradition: Enhance worker well-being and expertise, prepare the workforce on sustainability-related topics, and monetary training to create consciousness.
“Governance: Governance processes that assist particular sustainability-led missions and targets and meet sustainability-related reporting requirements corresponding to Worldwide Monetary Reporting Customary (IFRS) S1 and S2.”
On exterior initiatives, the Keynote Speaker mentioned “These are initiatives carried out by the group impacting the society and their model picture, to generate income. Such initiatives embrace: Product Innovation corresponding to carbon impartial insurance coverage, inexperienced bonds, inexperienced underwriting, sustainability-linked funding in renewable/ various power initiatives and sustainable infrastructure initiatives
“Develop culturally delicate merchandise that resonate with Nigeria’s numerous inhabitants, such because the enlargement of micro-insurance tailor-made to casual sector staff
“Use information analytics to higher perceive buyer behaviour, value dangers precisely, and design extra responsive merchandise
“Partnerships with Monetary Establishments: Collaborate with banks, fintech, and microfinance establishments to distribute insurance coverage merchandise. For instance, bundling insurance coverage with loans or financial savings accounts can improve penetration
“Foster an moral trade tradition the place buyer pursuits are prioritized to rebuild belief.”
Talking on the areas of the Sustainable Growth Targets (SDGs) that Insurance coverage corporations can positively influence, he mentioned, “Insurance coverage corporations can have an effect on local weather change by way of their function as traders in corporations,” including that “In paying claims, they assist promote increased development requirements.”
“Insurance coverage corporations can assist this purpose by way of Motor Insurance coverage by incentivizing protected driving habits.
Insurance coverage corporations can spend money on infrastructure initiatives; Insurance coverage corporations can assist this purpose by increasing and offering Well being Insurance coverage to a bigger share of the inhabitants. Medical insurance additionally helps to cut back out-of-pocket bills
“Micro-insurance has vital potential right here because it assists households in withstanding financial losses as a result of sickness, property injury, or demise of a wage earner.
“Insurance coverage creates monetary stability by making economies extra resilient. In addition they supply credit score insurance coverage that helps corporations develop larger. Insurers additionally create employment by way of their actions
“Insurance coverage can contribute to this purpose through paying claims that make sure the enterprise continuity of corporations after a loss, preserving employment, and utilizing pension merchandise to cut back old-age poverty,” he enumerated.
