Adeosun: Only three million Nigerians have insurance policies

Kemi Adeosun, minister of finance, says only three million Nigerians have insurance policies to protect themselves from uncertainties.

She made this known on Monday at the ongoing 2017 national insurance conference (NIC) in Abuja.

Represented by Mammud Dutse, permanent secretary in the ministry, Adeosun said insurance plays critical roles in the economy.

She said insurance facilitates investments by reducing the amount of capital and savings needed by individuals, corporations and agencies to fight unforeseen losses.

The minister added that total insurance premiums grew from N75 billion in 2005 to over N300 billion in 2016 and contributed approximately 0.7 percent to Nigeria’s gross domestic product.

She, however, said the figure was less than the African average of 3.3 percent and the global average of seven percent.

“This means insurance from writing more premiums for millions of Nigerians can provide finance for our long-term economic growth for the country’s recovery,” she said.

Adeosun said insurance practitioners must be willing to do more to make insurance “a giant industry to look up to.”

“Deepening insurance penetration to the rural areas must include, improving technical capacity to meet the emerging market trends,” she said.

“The best way to promote insurance is to incorporate both individuals and corporate entities into the insurance market.”