By Mariam Eko

Coronation Insurance has canvassed for financial inclusion to be able to protect businesses and individuals’ hard-earned cash.

This came under the spotlight during a recent webinar discussion hosted by the Managing Director of Coronation Insurance Plc, Mr. Olamide Olajolo and moderated by CNBC Africa Anchor, Mr. Wole Famurewa.

The panel of experts which include Founder and CEO at Lendsqr Mr. Adedeji Olowe Babatunde Akin Moses, CEO of Sycamore.ng and Yemisi Isidi, CEO of Triift Africa, shared individual perspectives and responded to questions from a lively audience of webinar participants.

The experts stated that insurance plays a critical role in both personal and business survival adding that by creating a pool of capital in which the good fortune of the many assured the survival of the few who encountered misfortune do not rely on their savings or assets to cover losses.

They further added: “In an economy of over 40 million small businesses accounting for approximately 84% of employment and 50% of Gross Domestic Product, GDP, Nigeria’s low rate of insurance penetration meant that most small businesses and individuals were relying on cash to manage daily risks. Yet even in large, successful businesses with substantial assets and secure cash flow, it was impossible to have investments or cash sufficient to cover your entire risk portfolio.

This kind of financial recklessness often challenged the ability of Nigeria’s small business sector to drive sustained growth and long-term prosperity. Just N250 000 cover, for example, could secure over N1 billion in risk. What business could set N1 billion aside to cover their own risks? ”

The panelists believed that the attitude to insurance could be changed in Nigeria by providing practical examples of how simple insurance products could sustain financial inclusion by protecting income and investment.
Panelists were also at pains to demonstrate the value of insurance, especially to businesses. “ Simple, affordable, products like health and life insurance for business owners, for example, could save a family or a small businessowner from being wiped out by the ill health of the bread winner or single business operator” they noted.
Furthermore, the panelists noted that access to credit was a key driver of business success across all businesses in Nigeria, stressing that small businesses, however, struggled to access credit”
They added that: “ In tough times and volatile exchange rates, insuring assets purchased at more favorable US dollar values was critical for businesses that relied on imported equipment, insight or services.
Fortunately, technology had made accessing insurance in Nigeria much easier and cheaper with many insurers offering simple, effective risk products, simply by downloading apps onto handheld mobile phones.”