Experts within the nation’s insurance sector have referred to as on Small and Medium Scale Enterprises (SMEs) to adopt insurance policies to mitigate business risks and guarantee sustainability.
The specialists who gathered at simply concluded webinar collectively organised by Coronation Insurance Plc and Coronation Life Assurance are working with Access Bank, for instance, to develop Business Protection Bundles together with primary hearth, flood, and restricted legal responsibility cowl in addition to restricted worker life insurance – offering three years’ yearly revenue – to allow Nigerian SMEs to affordably cowl the fundamentals of efficiently working their companies.
The recommendation is coming within the wake of the massive losses suffered by SMEs due to the civil unrest that was witnessed in a number of elements of the nation.
They mentioned SMEs had been vastly affected by the current disaster that originated from the protest and different current elements corresponding to alternate fee, rate of interest, and unemployment, “while some are geopolitical factors, technological factors, which most times could put their businesses on halt temporarily and in some cases permanently.”
They hinted that since SMEs are the important thing drivers of the economy, they need to be the main patrons of insurance policies as a number of risks abound in business.
Speaking throughout a digital assembly tagged: “Importance of Insurance for SMEs: Insurance Requirement for a Growing Business,” the Managing Director, of Coronation Insurance Plc, Olamide Olajolo, mentioned the webinar “is part of the company’s thought leadership initiatives designed to provide relevant insights for both corporate and individual clients across various sectors of the economy.”
Olajolo, defined that insurance is necessary to all and sundry together with SMEs, saying the previous three years have been marked by uncertainties.
The Head of Audit, Risk Management, and Compliance Department, Mrs. Adenike Janet Olabiran, mentioned, “over these 30 years, our Liquidity Ratio and Capital Adequacy Ratio have been far above the regulatory necessities. Indeed, it’s now by excess of 400 p.c above the necessities.
“In the 30 years of our operation, we have never fallen short of this regulatory metric requirement of 20 percent and 10 percent respectively at any time. This shows that we have been a very stable bank”, she mentioned.
“We have remodeled from the normal banking mode of operation which is generally handbook to e-banking operation. Hence there’s on-line entry to account opening and mortgage utility course of, approval, and disbursement by our e-channel, she added.
Going into the longer term, Okoli mentioned the board has “undertaken comprehensive study for the transformation, repositioning and rebranding of the bank with a five-year strategic plan in place and the implementation.”
