The Lagos Chamber of Commerce and Industry (LCCI) on Thursday inaugurated Sectoral Insurance Group to accelerate the level of insurance penetration in the country.
Mrs. Nike Akande, President LCCI, stated that a strong and competitive insurance industry was imperative for the country’s economic development and growth.
Akande noted that the insurance industry represents the backbone of risk management systems, ensures financial security, serves as an important component in financial intermediation chain.
She pointed out that insurance offers a ready source of long term capital for private and public sector projects, stressing that performance indicators of insurance sector was still below average in the country.
The President said, “The most recent statistics reveals that contribution of insurance sector to GDP is less than one per cent, less than one per cent of Nigerians have life insurance. There is near zero informal sector penetration and insurance density still stands at 0.225 per cent. Given these challenges, the decision of the chamber to form this group is timely.”
She added that the group would play strategic role in advancing possibilities in the sector through market innovation, better technology, improved business strategies, increased awareness and micro insurance or informal sector opportunities.
She taxed the group to be active in influencing policies, regulation and legal framework for promoting a conducive business environment in the sector.
In his speech, Mr Gboyega Olanbiwoninu, Chairman, Insurance Trade Group of LCCI noted that it remained a concern that irrespective of the huge potentials inherent in the country’s insurance industry, recognition and acceptance accorded the sector was abysmally low.
He maintained that the creation of the group would improve expansion of channels through which the premium place of insurance to national economic development would be revitalised.
Olanbiwoninu said that the group would leverage on the Chamber’s brand equity towards deepening insurance penetration and ensuring government involvement in implementing compulsory insurance as stipulated by Insurance Act 2003.