Insurance underwriters have been tasked to create products that will meet the insurance needs of Macro, Small and Medium Enterprises in Nigeria.
The chairman, House Committee on Insurance and Actuarial Matters, Right Honourable Darlington Nwokocha, made the call at the insurance awareness workshop organised by the National Insurance Commission in Lagos.
He said creation of affordable and acceptable insurance products that meets the needs of the insuring public will encourage acceptance and deepen penetration.
Nwocha said the House is doing everything within their powers to ensure that the Insurance Bill 2020 before the National Assembly which is about 70 per cent completion is completed to ensure full implementation of the compulsory insurances in the country.
The Governor of Lagos State, Babajide Sanwo-Olu who was represented by the Commissioner for Finance, Lagos State, Mr. Rabiu Olowo, while speaking at the event, acknowledged that MSMEs which account for about 49 per cent of the nation’s gross domestic product and contribute 90 per cent of the nation’s employment needs to be protected against unforeseen occurrences that will jeopardise their operations.
He implored the insurance operators to provide insurance solutions to the MSMEs.
Sanwo-Olu said the state government cannot afford to ignore the challenges confronting MSMEs and threatening their survival and described the sector as very resilient.
“Our MSMEs are very resilient, if you can do business in Nigeria and thrive, there is no where you cannot thrive,” he said.
He went further to say, “We have launched so many initiatives and strategies and are still implemented towards providing an enabling environment for MSMEs to not only thrive but to succeed.
“As laudable as these initiatives the sustainability of the anticipated gains cannot be fully guaranteed without a safety net against unforeseen circumstances”
As a guaranteed approach to protect small businesses against unforeseen losses and circumstances that may threaten their operations, the governor stated that securing insurance cover must be encouraged.
He advised insurance companies to ensure that insurance policies designed for MSMEs must meet their needs and also address the peculiarities of MSMEs.
“There should be specially designed products that will meet their category, income, operations and processes such must be affordable and free of technicalities so that it can be easily understood with assurance of settlement of claims,” he said.
”I enjoin all MSMEs in Lagos State to embrace insurance as a safety net against losses that might be suffered as a result of unforeseen circumstances,” he urged.
In his welcome address, the Commissioner for Insurance, Olorundare Sunday Thomas, identified MSMEs as critical to national growth.