The regulator of insurance business in Nigeria, National Insurance Commission (NAICOM) has extended its market development efforts to Lagos as it continues to rally the Micro, Small and Medium Enterprises (MSMEs), to take advantage of relevant insurance products as a shield against unexpected disaster which could affect and jeopardize their business continuity goals.
At a business sensitisation workshop held Thursday at the Lagos Chamber of Commerce and Industry in Ikeja, Lagos with stakeholders, the Commissioner of Insurance and Chief Executive of the Commission, Olorundare Sunday Thomas said “In addition to the efforts of the government at all levels, the spirit of entrepreneurship of Nigerians is driving creativity and productivity.
“However, the concern is that whatever gain or progress made in this sector can be halted abruptly in the face of a natural or man-made disaster which can often prove daunting to surmount without any support. I
“In particular, when MSMEs are affected by any mishap, the disruption produces not only direct business losses, but also indirect losses and economic ripple effects. The range of impact include job losses, debt overhang, and a relapse of households into extreme poverty.
He added that “Insurance is that product you buy when you think you do not need it because it may be too late to buy it when the need for it arises.
Thomas lauded the various and huge support of the Lagos State government for the MSMEs including the Lagos State Exclusive MSME Fairs as well as the N220 bn development fund to cushion the impact of the covid-19 pandemic thereby underlining the importance of insuring such massive investments against disaster.
He then made the pitch” Consequently, the MicroInsurance and Takaful are two insurance offerings carefully designed for affordability and inclusiveness to bring Insurance within the reach of one of the nations most valued contributors to the economy-the MSMEs. This will support the sector for speedy recovery when unforeseen situations occur.
Thus, NAICOM have undertaken to educate and drive enrollment for these products through this sensitization workshop.
According to him, “the workshop has so far made stops at three cities in Nigeria; Kano, Kaduna and Abuja pulling MSMEs from these cities and environs.
To ensure proper guidance and avoid unpleasant experience with fraudsters, the Commissioner listed the licensed players as “59 insurance companies, 510 insurance brokers, 4 Microinsurance companies and 4 Takaful companies licensed by NAICOM to operate. Be free to approach any of them for an appropriate and adequate insurance policy that meet your needs
He reassured that”NAICOM is committed to our mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs.
“I dare say that the MSMEs sector is too important to be neglected as it is key to economic development of the nation and thus, must be guided and protected against failure.