The rise in disposable income, digitalisation and automation of insurance services will enable the insurance industry to achieve increased profitability and market penetration, Nigeria Insurers Association (NIA) has said.
Its Chairman, Mr. Tope Smart, who spoke to reporters in Lagos, also said a growing middle class, better adherence to guidelines by market players and innovative service delivery would accelerate the growth of the industry.
He said a well-developed and vibrant insurance market is a catalyst for growth. He said it provides good mechanism for accumulating long-term funds for infrastructural financing, sustainability for business models, job creation, and an improved standard of living.
The drive for reforms in the insurance sector, according to him, is geared towards unlocking its inherent but untapped potential as encapsulated in EFInA market survey report, which revealed only 1.9 per cent out of 96.4 million adult Nigerian of 18 years and above have insurance in the 2017 accounting year.
He however said the industry is set to reap the benefits of opportunities and potential in the economic recovery occasioned by improving crude oil prices and output level stability, improving foreign reserve and declining inflation in the coming years.
He said: “In line with the Federal Government’s decision to focus more attention on the insurance industry and to reposition it for improved growth, the regulator came up with a number of market transformation agenda. These initiatives include the new pricing regime on compulsory insurance, Revised Guidelines while there are discussions on RBS- Risk Based on Micro Insurance, Supervision.”