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Insurance operators hopeful on increased policy renewals

As the general elections have come to a close, insurance operators are heaving a sigh of relieve that business might pick up once again.

At the peak of the campaigns and elections, the insurance industry witnessed a lull as politicians who are in charge of ministries, parastatals and agencies all kept their fingers crossed refusing to look the way of the industry, because of the uncertainty that surrounded the whole process.

However, stakeholders are of the view that the situation is not peculiar to the insurance industry because in Nigeria, economic activities normally come to a halt during elections and particularly when there is presidential election.

A source who spoke to Vanguard on the basis of anonymity noted that as the elections campaigns took full swing, economic activities witnessed a lull as politicians took to campaigns and abandoning all other things and the insurance industry that has been a low activity sector was hard hit.

It will be recalled that before the elections proper, fears about the potential impact of the whole process intensified as foreign investors pulled a lot of money out of the economy, leaving the Naira depressed.

The local currency which has remained fairly stable at N149 to N151 to the Dollar for over two years, declined sharply to about N156 to the dollar. Financial Market Dealers Association of Nigeria (FMDA) predicted that the naira may depreciate further due to rising demand for foreign exchange without corresponding increase in supply.

Analysts said the heating of the polity by politicians with threat and series of bomb blasts across the country unsettled foreign investors who are said to be moving dollar outside for safety in the event of political crisis.


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