Insurance industry has potential to advance national growth – NAICOM


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Chuks Udo Okonta

The National Insurance Commission (NAICOM) said the insurance industry has the potential to be a major driver of advancing national growth and development through freeing government dwindling resources usually deployed to mitigate losses to citizens arising from fundamental risks and catastrophic events.

The Commissioner for Insurance Sunday Thomas, said this at an event recently held by the Lagos Chamber of Commerce and Industry (LCCI) in Lagos, stressing that the insurance industry is a pivot to guarantee the sustainability of growth and development of the State and its people.

He stated that all players in the Industry would continue to work together, pooling resources, facilitating capital transformation, hedging risks and many others including innovation of tailored policies that meet the needs of the government and the insuring public.

Thomas posited that NAICOM as government agency, is determined to complement various policies of the government with various initiatives that will aggressively open up and grow the economy.

He submitted that slack in economic expansions could be associated with slow growth in the proxies that define insurance activities, such as; gross premium Income, insurance penetration and density and insurance gap.

According to him, thinking and rethinking insurance in developmental process enables investors concentrate on commercial aspects of investments, whilst relying on the comfort of the cover provided by insurance Institutions for pure risks not excluding political risks.

“We must therefore think Insurance when considering the risks of expropriation, currency inconvertibility, terrorism and sabotage, sovereign and sub-foreign obligor risks, protracted defaults and many other risks that could interrupt our businesses and partnerships,” he posited.

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