Insurance Sub-Sector Worst Hit by Financial Exclusion Problem
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This was disclosed recently by financial analysts in African Independent Television (AIT) programme.According to the analysts, greater number of Nigerians in both urban and rural parts of the country, live their lives and go about their businesses without having anything to do or caring to have anything to do with insurance.The analysts said most of these are well learned yet they cared less about insurance.The analysts said these are the target of the Central Bank of Nigeria (CBN) in its financial inclusion strategy.This, they noted is also a sign of poor savings habit among Nigerians and explains the long gap between Nigerians and financial institutions like banks when it comes to credit grants.According to them, Nigerians into micro, small and medium scale businesses find it difficult getting loan because the finance institutions are looking at their money generating and savings habit as they encouraged Nigerians to imbibe good savings habit to enable them grow tiger businesses through loans granted by banks.They also encouraged them to buy insurance services to help mitigate against risks.The experts also attributed people’s apathy to insurance to poor awareness creation by insurance operators.These observations are coming on the heels of similar observation and comment on poor insurance awareness and poor publicity campaigns among insurance industry operators by the Minister of Finance Kemi Adeosun, who at the recent insurance conference held in Abuja, disclosed that out of the 57 insurance companies in the country, less than 23 advertise their products while others often leave the public in the dark concerning their products and insurance industry at large.The minister identified low awareness as one of the factors responsible for the under-performance of insurance sector.“The companies put in less than 20 adverts on television, less than 10 adverts on radio and less than 10 adverts on social media.“Other factors include poor distribution channels and unethical practices among operators,” she said.Adeosun said that her ministry was working vigorously with the National Insurance Commission NAICOM to cover this gap and ensure that the industry begins to perform optimally. Discover more from NewsBreakers
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