NIA launches campaign on micro cover for informal sector
The operators include market women, traders, artisans and NGO’s who believe in insurance as a viable tool for mitigating losses among the less privileged.
The Chairman of the association, GUS Wiggle, in his welcome address at the fair in Lagos said, the insurance industry regulator, National Insurance Commission (NAICOM), has sets out the framework, road map, market and regulatory strategic directions for the operation of micro insurance in Nigeria.
This conference, he said, is put together by the Micro Insurance committee of the Nigeria’s Insurers Association as a followup to that decision. Our aim is to bring together all stakeholders concerned with micro insurance in Nigeria with the overall objective of ensuring that both the demand side and the supply side of micro insurance are brought together.
This conference is also meant to create awareness for our member’s micro insurance products for informal sector of the economy.
He said, “It is common knowledge that insurance culture is very low among the informal sector and it would take delibrate effort like this to win the confidence of this sector. The country diagnostic study says less than one per cent of the adult population in Nigeria have access to a (voluntary) insurance policy. Nigeria is among the least countries in terms of insurance contribution to GDP which is around 0.72 per cent. The Nigerian insurance sector is regarded as “a glossly untapped opportunity” because we have not yet appealed to the informal sector which constitute over 80 per cent of our population.
For the NIA, he said, the obvious way forward is through closer interraction with this sector, intensive capacity building and greater expertise in microinsurance, providing unique micro insurance services, development of people friendly products, and improved innovative distributive system.
The NIA boss said “Micro insurance is targeted at the informal sector and the low income masses. It is the most veritable too for mitigating losses from unexpected accidents and disasters. Low income groups are invariably exposed to innumerable risks. Micro insurance works on the phenomenon of risk transfer mechanism characterized by low premiums and low coverage limits”.
“As an industry, we will continually seek for opportunities to court the friendship of this sector. For us the future of our industry most probably lies in what we do with this sector and how the sector accepts our products and services. We are optimistic that the relationship we are starting today will continue to blossom and get stronger.