Lagos - An economist and financial analyst, Dr Biodun Adedipe, has urged operators to take insurance products to the poor in the society.
Adedipe told the News Agency of Nigeria (NAN) in Lagos that taking insurance products to the poor would help the industry to increase its contribution to the nation’s Gross Domestic Product (GDP).
According to him, the recent rebasing of the economy is an indication that other sectors of the economy have grown at the expense of the insurance sector.
"Insurance is a key sector of the economy and it also provides support to other sectors."
"The operators should look at insurance policies and their enforcement and check if there is any disconnection between the practice of insurance and the masses who benefit from their activities," he said.
Adedipe, who is also the Principal Partner of B. Adedipe and Associates Ltd, said that the operators could look at the products they would create that would meet the needs of the poor.
He said they should also find a way to structure insurance products in a way that people would be able to pay their premiums on a weekly and
a monthly basis.
The financial analyst said that the insurance industry should leverage on the nation’s population of over 150 million and provide for every
segment to be able to grow the industry.
"If half of the estimated150 million population buy insurance, you can imagine the difference it will make in the operators balance sheets, as well as in job creation," he said.
Adedipe said that with such growth, the investment environment would also benefit as most of the money would be plugged back into the
NAN recalls that on April 6, the Federal Government announced the rebasing of the nation’s economy from $285.56 billion to $510 billion.
This placed Nigeria as the 26th largest economy in the world and first in Africa.
The contribution of the insurance industry to the rebased economy was, however, less than 7 per cent.