Expert Laments Low Insurance Penetration Despite Youth Population

Dr. Akeem Oyewale, the Chief Executive Officer of Marble Capital Limited, who delivered the keynote paper at the recent BusinessToday Annual Conference in Lagos said a financially empowered youth population boosts national savings and investments, just as higher insurance adoption reduces reliance on government social support, creating a more sustainable economy.

The theme of the conference was “Banking on the Future: Youths, Pension and Insurance Penetration.”

Oyewale lamented however that despite the growing youth population, insurance adoption remains alarmingly low, with Nigeria’s insurance penetration at just 0.5% of GDP, with minimal youth engagement.

“While the global average stands at 6.80%, Nigeria’s rate is significantly lower, suggesting that the country’s insurance sector is underdeveloped. Even in the African context, Nigeria’s penetration rate lags far behind leaders like South Africa (11.54%) and Namibia (7.41%).”

In his goodwill message, Mr. Segun Omosehin, the Commissioner for Insurance and CEO at NAICOM said the Commission is focused on driving innovation and expand youth penetration in the insurance sector in Nigeria.

“As the future depends on how we engage and equip our youth, it’s essential to prioritise their exposure and relevance in the financial sector. To achieve this, the Commission is focusing on building trust and driving innovation to cater to the evolving needs of our growing young population. By that, we encourage the insurance industry to ensure that insurance products and services are tailored to meet the unique requirements of younger generations, promoting financial inclusion, stability and greater adoption of digital insurance solutions.”

He said by emphasising youth engagement and promoting financial literacy, there is a huge opportunity to unlock the potential for growth and development in the insurance sector. This he added, will in turn, contribute to the overall economic prosperity of Nigeria, as the insurance industry plays a vital role in mobilising long-term savings, financing infrastructure projects and promoting risk management.

“As a Commission, we are committed to building trust and driving innovation which will pave the way for a more inclusive and sustainable financial system, where the needs of the young generation are at the forefront.”

He said to secure the financial future of young people, stakeholders must rethink engagement strategies by offering youth-friendly financial products to meet the unique needs of young people, strengthening financial education by introducing targeted literacy programs, leverage workplace initiatives to promote insurance participation.

“Insurance services are key initiatives that when made youth-friendly, can change the face of capital formation and wealth dynamics in Nigeria.”

 

Hot this week

Fidelity Bank Expands Access to Affordable Financing, Sustainable Business Growth for Abuja SMEs

L-R: Regional Bank Head, Abuja III, Martin Ayodele; Divisional...

Union Bank, Partners Recognise Outstanding Educators, Commissions Digital Learning Centre in Abuja

Union Bank of Nigeria has again demonstrated its longstanding...

Dakar’s Olympic Opening: 84.3% Praise on Coverage—But Africa Had a Storytelling Problem

  Africa Reputation Pulse’s new report examines the global media...

Nigeria’s Power Crisis is Frustrating a Generation of Young People

By Elvis Eromosele Imagine a young Nigerian sitting in a...

Topics

African Union Unveils All-Africa Passport to Boost Travel, Trade

While is U.K. was busy separating from the European...

Stanbic IBTC Bank Nigeria PMI: New Orders Continue to Rise Sharply in June

Improving demand conditions helped to support further increases in...

Nigeria Airways: Murdered in Cold Blood 12 Years Ago by Government! Obasanjo Part 2

In Pages 109, 110 and 111, IFC further gave a deft analysis of the consequences of Liquidation, some of which include: (i) Less likelihood of strong national carrier from “survival of the fittest local strategy; (ii) Disorderly development of air transport market: increases of financial cost from collapse of several domestic carrier; (iii) Great likelihood of worsening safety records in Nigeria; (iv) Increased reliance on foreign carriers, among others. (v) Nigeria would most unlikely not develop into a regional hub.

Pension Industry Paid N271bn to Retirees in 2014

Operators in the pension industry paid out total of N271.15 billion as lump sum to retirees in 2014 under the new Contributory Pension Scheme (CPS) and an average monthly pension of N3.84 billion. In addition, another sum of N62.20 billion was paid as premium to insurance companies to provide life annuity for 14, 784 retirees. Mrs. Chinelo Anohu-Amazu, Director-General, National Pension Commission (PenCom) told Business Journal in an Executive Chat that a total of 115,529 workers had retired as at 31 December, 2014 with 87.20 percent (100,745) of the retirees on Programmed Withdrawal, while the remaining 12.80 percent (14,784 retirees) were on Life Annuity.

Market Statistics: Wednesday, 11th October 2017

Market Cap (N'bn)              12,616.5 Market...

CJN, Olukayode Ariwoola, Commends NCC as Worthy Telecom Regulator

L- R: Executive Commissioner, Stakeholder Management, Nigerian Communications Commission (NCC), Adeleke...

Access Bank Unveils TraderLite Product for Micro SMEs

In the bid to stimulate the growth of the...

NCC Committed to Rapid Adoption of ICT in Health Sector

TEXT OF THE SPEECH DELIVERED BY THE EXECUTIVE VICE CHAIRMAN OF...