By Cynthia Alo
Chief Executive Officer of NEM Insurance plc, Mr. Tope Smart, has said that more investment was required to stimulate the development of Nigeria’s insurance sector. He stated this while speaking on the theme, “Infrastructure and Economic growth: Exploring the strategic Alliance” at the 10th anniversary of Business Journal in Lagos. He said: “Investment in infrastructure will result in the growth of the economy of any nation and the attendant insurance needs resulting from such economic growth will be to the benefit of the insurance industry.
“This will lead to improvement in mortality rate and reduce death claims under life insurance. Also, good roads will reduce the number of accidents, thereby leading to a reduction on a motor insurance claim, goods in transit insurance and group personal accident insurance among others. This will ultimately lead to a better, stronger and a healthier insurance industry.”
According to him, insurance is the backbone of any economy because of the basic role it plays in restoring someone, firm, or government to the position it was before the occurrence of an insured peril.
Other value the insurance industry adds to the economy, according to Smart, includes, helping to smooth out the volatile economic condition of a nation, protection to firms and organizations over any damage or interruption in the production process thereby enhancing their financial stability.
promoting entrepreneurial attitude, encouraging investment innovation and the vitality of the market which reduces pressure on government, increasing financial intermediation through the creation of liquidity and savings through life insurance products, provision of funds for long-term investment in the real economy among others.