Stakeholders And Lawyer Have Identified Factors Responsible For Low Insurance Penetration
Stakeholders And Lawyer Have Identified Factors Responsible For Low Insurance Penetration
A senior Advocate of Nigeria Omogbai Omo-Eboh at a recent conference organised by Insurance Publication Limited in collaboration with Centre for Financial Journalism held in Lagos, stated that there was need for journalists to give accurate and factual reporting of financial matters to Nigerians
Omo-Eboh addressed the spate of losses incurred by people during tragedies. Some of those losses, he stated, could be the aggregate of what people had worked for over the years.
Stakeholders and lawyer have identified factors responsible for low insurance penetration and lack of confidence in the sector by Nigerians.
Stating that the primary aim of insurance was to obtain an indemnity to the full extent as prescribed in the policy and permitted by law in the occurrence of an insured loss.
Omo-Eboh decried the rate of insurance penetration in Nigeria (0.5 per cent as of March 2022 according to a report), as being one of the lowest in Africa.
Several reports have also revealed that only about 3.4 million out of the 12 million cars on Nigerian roads are insured.
Explaining some of the reasons
Explaining some of the reasons for the poor insurance culture in Nigeria, Omo-Eboh mentioned that Nigerians lack trust in the insurance companies and also have no knowledge of insurance services.
These problems can be remedied by using the media to educate the people and convey the benefits of insurance as the best mitigating factor to most risks encountered in man’s existence.
Current statistics, as seen above, show that less than one per cent of Nigerians have any kind of insurance.
A combination of illiteracy, ignorance, poverty and religious/cultural beliefs is largely to blame for this.
Insurance companies are encouraged to develop and specifically market micro-insurance products for the less affluent members of society, as is being practised in other developing countries.
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