Experts within the non-public sector of the economy have suggested insurance and pension operators to present important incentives that may appeal to these within the casual sector to embrace micro insurance and micro pension plans within the nation.
The Director General/Chief Executive Officer of Lagos Chamber of Commerce and Industry (LCCI), Dr Chinyere Almona, delivered a paper with the themed: “Onboarding MSMEs into Micro Insurance and Pension Space in Nigeria,” on the seventh version convention of the National Association of Insurance and Pension (NAIP), held in Lagos.
“Although the insurance and pension sectors have been doing so much in driving the monetary inclusion initiative of the Federal Government, there’s a want to incentivise and encourage these within the casual sector,
The Nigerian Nano, Micro, Small and Medium Enterprises (MSMEs) operators want to embrace micro-insurance and be a part of the micro pension plan,” Dr Almona stated.
While calling on underwriters and pension directors to reap the benefits of alternatives that abound within the MSME sector, Dr Almona stated, “MSMEs present a huge opportunity for the micro insurance and pension industry due to the size of the workforce.”
Other alternatives embody massive MSMEs employment/labour drive, massive prepared grownup inhabitants, increasing distribution channels, beneficial regulatory surroundings, mature monetary providers sector and revolution in info know-how and digital improvements.
According to her, statistically, the overall variety of employment by MSMEs stood at 61.9 million representing 87.9 per cent of the overall labour drive within the nation, including that the variety of employment generated by the casual sector was 16 million whereas the formal sector generated 7.5 million in 2020.
On the necessity to step up consciousness and enlightenment of the MSMEs on the advantages of micro insurance and micro pension and software of know-how Dr Almona stated “investment in enlightenment campaigns and enabling technology are required.”
The advantages, in accordance to her, embody a security internet at retirement, alignment with the present social empowerment programmes, minimises old-age poverty, Improves way of life for the aged
While calling on the National Insurance Commission (NAICOM) and the National Pension Commission (PenCom) to present the required regulatory framework that helps NMSMEs with regulatory assist, Nigeria is effectively positioned to obtain significant micro-pension protection quickly in addition to improve insurance penetration.
However, within the micro insurance trade, Dr Almona stated the ratio of belongings to Gross Domestic Product (GDP) has remained stagnant at one per cent, whereas micro pension, she stated the share ratio of pension belongings to GDP stays low, stating that the overall pension contribution remitted by the general public sector is barely increased than that of the non-public sector which, in accordance to her, additional justifies the low penetration of pension within the non-public sector of the economy.
Speaking additionally on the convention, the Director-General, of the National Pension Commission (PenCom), Mrs Aisha Dahir-Umar, who was represented by the Head, of the South West Office of PenCom, Dr Tunde Alayande, stated that PenCom in collaboration with the Pension Operators Association of Nigeria (PenOp), has provide you with plenty of initiatives for the SMEs for the good thing about the trade.
Speaking on behalf of the Nigerian Insurers Association (NIA), the Chairman, Segun Omosehin counseled NAIPE for the convention., saying that the convention just isn’t solely important to the insurance trade but additionally the complete monetary providers trade.
According to him, NAIPE just isn’t solely projecting the picture of the trade however in such a fashion of creating folks get to perceive what we do, what we symbolize and the way the sector can affect our economy.
Earlier in her welcome handle, the Chairperson of NAIP, Mrs Esezobor Nkechi Naeche, stated the theme of the convention was thought-about due to the significance of SMEs as drivers and engines of development of the Nigerian economy and the necessity to assist it to proceed to contribute to the expansion of the economy.
She urged micro insurance and micro pension operators to see SMEs as their development belongings by making certain that they’re correctly captured.
