The Nigerian Insurers Association (NIA) has identified the poor standard of living of Nigerians and their low disposable income as threats to survival of insurance industry in the country.
Addressing journalists in Abeokuta, Ogun State recently, NIA’s Director-General,Sunday Thomas, said the poor attitude to savings and risk management among the insuring public unlike what obtains in other developed jurisdictions are also factors threatening the survival of the insurance industry.
Other issues, he stated, constitute challenges to the nation’s insurance industry are increasing environment of uncertainty and crimes including Boko Haram, and kidnapping as it concerns the underwriting of emerging risks.
He further pointed out that faking of insurance certificates by touts at vehicle licensing offices, seaports, cut-throat competition, poor industry database as well as industry practices that are not consistent with sustainability do not augur well for the industry.
The NIA boss added that other problems facing the industry border on skills gap in highly technical areas of insurance operations such as Marine and Aviation, Oil and Gas etc.
Thomas emphasised that the other issues that must be addressed to ensure the survival of the nation’s insurance industry are the poor attitude to training and human capital development by the industry operators and less than optimal financial literacy in the country.
Additionally, he lamented that the insurance industry has continued to be bedeviled by several challenges relating to image and public perception, noting that among these challenges are:
“Poor Public perception occasioned by several factors including what many term the conservative nature of insurance and its operators.
“Unpatronisingcomparism of the industry with the banking sector. It is always the norm to compare the insurance industry with its twin brother- the banking industry, with a conclusion that the latter has continued to fare better in terms of public image and perception.
“Relative absence from public consciousness. The public most often do not conceive insurance services as being as fundamental to their existence as banking services.”
Source : Independent