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The insurance industry paid N550bn as claims in half year 2023, the Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NAICOM), Sunday Thomas, has said.
While presenting a paper entitled; ‘Rethinking Insurance as a Critical Economic Growth Strategy’ at the Lagos Chamber of Commerce and Industry (LCCI) Insurance Group 2023 Stakeholders’ Consultative Forum in Lagos, he added that the industry paid N398bn as claims in 2022.
He said that analysing the impact of losses especially from the angle of paid claims reveals the extent of insurable adverse events leading to financial losses which if not insured, would have slowed down the economic activities that galvanises economic growth.
Thomas said every institutions including the government embark on strategies for maximising revenue and optimizing expenditures which may constitute exposure to financial insecurity. He stressed that insurance is often considered a first line priority in ensuring financial security as it serves as a component of risk management system that mitigates the impact of financial risk on entities, government, other institutions and individuals.
The NAICOM boss noted that the Federal Government has embarked on opening up the economy to developments of industries through diaspora partnerships, foreign direct investments and facilitating as well as enabling business environments in Nigeria.
He submitted that there wouldn’t be attractions without institutions covering the risks associated with such openings to the world, a country 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.
“Thinking 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” he added.
