By Rosemary Onuoha

Worried by the low contribution of insurance to the economy as well as the refusal of government to take the sector serious, experts in the sector have called for the establishment of Nigerian Insurance Organisation that will serve as a link between the insurance industry and the government.

Speaking on the issue, Group Managing Director of Industrial and General Insurance Plc, IGI, Mr. Rotimi Fashola said that time has come for all players in the industry to close ranks in order to take full advantage of the untapped potential demand for insurance in Nigeria.

Fashola said, “To actualize this goal, I suggest we form an umbrella body that will bring together all insurance sector groups — Nigerian Council of Registered Insurance Brokers, NCRIB; Nigerian Insurers Association, NIA; Institute of Loss Adjusters of Nigeria, ILAN; Professional Insurance Ladies Association, PILA, etc. The forum, which will serve as a platform for deliberations on critical industry issues, should have its chairmanship rotated on a yearly basis.”

Fashola said that the Organisation will be a major step to engender the relevance of their business to the growth of the nation, adding, “Towards achieving this goal, I am advocating greater collaboration among all insurance practitioners. We should encourage healthy competition.

“All around us, we see challenges and opportunities that abound in our industry and the nation’s economy. But the Nigerian insurance market remains at an embryonic stage of development with the combined assets of the country’s insurers comprising only a tiny percentage of GDP and total premiums, lagging behind more developed markets such as South Africa.”

He however said that the past few years witnessed considerable expansion in the sector, as rapid economic/population growth and rising prosperity boosted demand for life and non-life products, adding, “The sector has also benefited from the increased entry of foreign life insurance providers.