Insurance Pivotal To Economic Growth-Mutual Benefits

A Non-Executive Director, Mutual Benefits Assurance Plc, Ms Kadaria Ahmed, says the availability of and accessibility to insurance and its products were pivotal to the nation’s economic growth.

Ahmed said this while delivering a keynote address at a one-day training organised by the underwriting firm for journalists covering the insurance and pension industry with the theme: “Winning With Retail Products’’ on Wednesday in Lagos

She explained that insurance was instrumental to economic growth because it provided safety and security, served as a financial responder, and was also a risk mitigator.

Ahmed, who is also the Chief Executive Officer, Radio Now, said that in ensuring financial and economic stability, insurers served as capital protectors, instruments of social policies, capital infusers, and sustainers of the supply chain.

The director stated that insurance ensured economic development through infrastructure development, community building, credit facilitation, and promotion of innovation.

She noted that the contribution of insurance to the country’s Gross Domestic Product (GDP) and the promotion of entrepreneurial activities was highly impactful.

‘’Without the guarantee of insurance, most businesses will not be able to operate and construction projects which foster infrastructural development will not go forward.

‘’Creativity and innovation will be hindered as people/ businesses will not be willing to take risks, explore other areas of expansion, and break from the old ways of doing things,’’ she said.

According to her, reports on the industry should go beyond products and events, but also make people really understand the significance of insurance.

Ahmed said: “Insurance activities in the country should be encouraged through continuous sensitisation of the public on the benefits of insurance.

She charged governments at all levels to provide an enabling environment that encouraged the insurance businesses to thrive.

Ahmed urged the government to formulate reliable policies around risk management, saying it would help build the trust of citizens in insurance and also attract investors to the industry.

In his welcome address, the Managing Director, Mutual Assurance Benefits, Mr Femi Asenuga, identified retail insurance as a strategy for penetration into the market.

Asenuga said that the insurance company had the largest retail marketing team with specialised products, addressing the needs of various segments in the market.

“Our target is on the unserved and underserved in the market and we have been able to provide products that meet and satisfy their needs over the years, ” he said.

According to the managing director, the underwriting firm is providing the products and policies at a very accessible and affordable rate.