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Chuks Udo Okonta
Inclusive insurance is targeted at about 6.5 billion people in the world who are vulnerable to sickness; illnesses; job losses; business premises destruction or damage by floods or fire, the Micro Insurance Network (MIN) has said.
Chief Consultant, B. Adedipe Associates Limited, Dr. Biodun Adedipe, revealed this yesterday, while speaking on a theme; ‘Insurance and Financial Inclusion: Developing Insurance Products for the Informal Sector’ at the University of Lagos Actuarial Science and Insurance Class of 89 Alumni symposium in honour of Prof. Sunday Aduloju in Lagos, adding that there is a huge gap between losses to life and properties that are insured.
He submitted that the gap was estimated by Swiss Reinsurance Institute at an annual value of $1.42 trillion being the economic value of health care; untimely death and climate disasters.
He noted that the real concern is about the 1.8 billion people that are very poor – they do not have enough to eat, noting that add to this is another 4.7 billion people that are not extremely poor, but are highly vulnerable and that makes up the figure of 6.5 billion people that are generally referred as low income, emerging insurance customers and bottom-of-the-pyramid.
He said while governments and insurance regulators will worry about insurance penetration and contribution to Gross Domestic Product (GDP), the real challenge in this is to insurance practitioners who have to develop products that will effectively address this massive protection gap.
Speaking on demand for micro insurance in Nigeria, Adedipe noted that findings from Efina revealed that 31.2 million Nigerians adults said they will be interested in using micro insurance which therefore means that there are N37.4 billion untapped premium at an average of N100 monthly premium.
On benefits of micro insurance, he said it provides social protection; financial inclusion; economic development; wide reach and financial literacy.
He identified prominent micro insurance products as life; disability; property and agriculture.
He commented the alumni for celebrating Prof. Sunday Aduloju and called for more collaboration between the gown and town to deepen insurance penetration.
The Chairman of the occasion and Director-General, Nigerian Insurers Association (NIA) applauded the alumni for celebrating the celebrant and his contributions to insurance and actuarial science development.
She noted the insurance inclusion was targeted at 40 per cent, but the industry is presently doing two per cent.
The celebrant, Prof. Sunday Aduloju, appreciated the alumni for celebrating him, noting that he has had three major celebrations which are: the day he gave his life to Christ; his wedding and the event of the day held in his honour.
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