June 2, 2022

How insurance provides financial, economic supports — Mutual Benefits

How insurance provides financial, economic supports — Mutual Benefits

By Rosemary Iwunze

Director, Mutual Benefits Assurance Plc, Kadaria Ahmed has said that insurance provides financial and economic benefits to the general public.

Ahmed stated this at a one-day capacity building program for members of the National Association of Insurance & Pension Correspondents (NAIPCO) organised by Mutual Benefits at the company’s head office in Lagos.

According to her, insurance provide financial and economic benefits in the sense that it is a form of capital protector, instrument of social policies, capital infuser and also help sustain the supply chain.

She stressed that insurance activities in the country could be enhanced by the continuous sensitization of the public on the benefits of having insurance.

She added that reliable policies should be formulated around risk management that will build trust among citizens and even attract investors into the industry, arguing that the government should also provide appropriate environment that will promote insurance business.

According to her, insurance provide security to the insured, a financial first responders. As well as provide risk mitigation to the insured.

As a means of providing development, she named infrastructure development, community builder, innovation and credit facilities as important areas that insurance could be of immense benefits.

While highlighting the central importance of insurance to the economy, Ahmed stated that insurance makes strong contributions to the GDP of the nation, as well as, promote entrepreneurial activities.

Ahmed noted that the success of any economy is tied to availability and accessibility of insurance and its products.

Without the guarantee of insurance, she argued that most businesses will not be able to operate, and construction projects which foster infrastructural developments will not go forward.

According to her, “creativity and innovation will be hindered, as people’s businesses may not be willing to take risks, as well as, explore other areas of expansion and break from old ways of doing things.”

She therefore called on the media to report insurance beyond products and industry events, but also help people understand insurance significance, and not just as individuals, but to society and national development.

Also speaking, Managing Director/CEO of Mutual Benefits Assurance Plc, Mr. Femi Asenuga described the insurance industry as the bedrock of any economy, leading to sustainable growth of the Gross Domestic Product (GDP) of any nation.

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