L-R: Chief Babajide Olatunde-Agbeja, Chairman/CEO, Boff and Company Insurance Brokers Limited; Omowale Olatunde-Agbeja, Head of Operations, Boff and Company Insurance Brokers, lagos; Dr. Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited and Mr. Ajao Adebayo, Research Economist, B. Adedipe Associates Limited during the media parley with Boff & Company Insurance Brokers and B. Adedipe Associates Limited in Lagos.
Experts have charged operators in the Nigerian insurance sector to increase their financial and technical capacity to retain more risks locally and ensure greater profitability.
Speaking at a media parley jointly organised by Boff & Co Insurance Brokers Limited and B. Adedipe Associates Limited for insurance journalists in Lagos, they agreed that the industry has improved its capacity over time, but insisted that a lot of insurance businesses in the country are still insured offshore.
They equally identified operators and regulators’ co-operation, sustained and constant stakeholders’ engagement, among others, as critical to the growth and development of the Nigerian insurance industry.
Chairman/Chief Executive Officer of Boff & Co Insurance Brokers Limited, Chief Babajide Olatunde- Agbeja called for increased capacity, regular staff training, investment in information and technology and regular engagement with stakeholders to grow the sector.
According to him, “there is the need for increased capacity in the Nigerian insurance industry. When Boff an Co started special risk 25 years ago, we were doing about 70 per cent of our portfolio abroad, overtime, it reduced from 70 per cent to about 20 per cent and in the last six months, we had problems of finding excess capacity to insure abroad. I am proud to tell you that, as of today, the businesses we did in the last three months were 100 percent placed in Nigeria.
“The capacity is growing but we need to back it up with technical know-how, training and retraining of staff. Insurance industry should keep pace with the trend of events globally because insurance business is an international business.”
On the need for recapitalisation of the industry, he said:
“Although the industry is doing well, we only need to be better. We need to be sincere, be professional, and ensure that capacity increases continuously. The economy is open, investors are coming in to invest in life and general businesses and special risks, because they have seen things we are not seeing and we need to work more on our technical know-how because that’s still lacking,” Chief Agbeja added.
Earlier in his presentation titled “2021 Review and 2022 Economic Outlook,” the Chief Consultant of B. Adedipe Associates Limited, Dr. Biodun Adedipe applauded insurance industry but felt there are areas of improvement.
“Nigeria is still experiencing low penetration of insurance. So, what next can the government do? Government also needs to be responsible to its insurance obligations. It needs to promptly pay premium; there is also a need for flexibility and enforcement of necessary laws. If the government and its agencies are responsive, put more firmness into enforcement, then what we have today will change and the industry will create more value. And of course, when the insurance sector is vibrant, it enables businesses and entrepreneurs to take risks which is part of economic growth,” he pointed out.
On low insurance penetration in Nigeria, the economist said there is need for operators to provide adequate information to policyholders and prospective insurance customers and clients.
“If someone says it is because of religion, can we point them to the direction of takaful? People need to see that insurance is fundamental and important for growth. Globally, insurance is becoming more important and Nigeria cannot be left out from this trend,” Dr. Adedipe stated.