By ROSEMARY ONUOHA

Law Union & Rock Insurance Plc has setup a microinsurance unit to provide policies to meet the needs of different segments of the society.

Managing Director of the firm, Mrs. Toyin Ogunseye said that this was part of efforts to support the Market Development and Restructuring Initiative (MDRI) of the National Insurance Commission, NAICOM, to drive insurance to the grass roots.

Ogunseye said “We have already started our microinsurance unit with its product and channel development initiatives.”

The Law Union & Rock boss commended NAICOM’s efforts at developing the sector through MDRI.

According to her, the measures introduced by the commission-creating more awareness and increasing government support for the industry-was increasing the appreciation of insurance in the country.

Ogunseye pointed out that microinsurance has the potential to significantly improve the lives of the world’s poorest people and positively impact the development of the informal sector. She explained that it is one of the instruments that is being used to bring the poor into conventional financial systems and at the same time improve their wellbeing to give them a better standard of living.

The Managing Director further explained that microinsurance can also be seen as an instrument to actualise the much needed financial inclusion of the population at the bottom of the pyramid. She said that this is because the conventional insurance does not by nature cater for the poor or the low income earners in the society.

She said that the firm was interested in meeting the needs of the insuring public through the provision of innovative products which would be affordable to the retail market.

Ogunseye said that with microinsurance, the policyholder would be encouraged to build a savings culture and create wealth for himself. She also said that when the policyholder has insurance against an insured occurrence, he would not have to go through any hardship because his insurance company will pay him his claims when such need arises.