The Chairman of Boff & Co Insurance Brokers Limited, Chief Olatunde Babajide- Agbeja, has implored Nigerian insurance firms to increase their capacity to retain more risks locally.
Agbeja said on the sideline of a media parley organised by the firm and B. Adedipe Associates Limited in Lagos.
He noted that this would lead to enhanced profit for the insurance industry.
Agbeja urged operators to improve on staff training, invest in ICT and have regular engagement with stakeholders to grow the sector.
“There is the need for increased capacity in the Nigerian insurance industry.
For example, when Boff & 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 per cent placed in Nigeria, ” he said.
On the need for the recapitalisation of the industry , Agbeja explained that those who went to court to stop the scheduled recapitalisation for the insurance Industry , were doing a lot of disservice to the industry.
Agbeja said : ” Though 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 investing in life and general businesses and special risks, because they have seen things we are not seeing.
“We need to work more on our technical know-how because that is still lacking .
Earlier in his presentation entitled “2021 Review and 2022 Economic Outlook“, the Chief Consultant of B. Adedipe Associates Limited, Dr Biodun Adedipe, while lauding the insurance industry felt there were areas to be improved upon.
Adedipe urged the government to be responsible to its insurance obligations, for flexibility and enforcement of the necessary laws.
“If the government and its agencies are responsible and put more firmness into enforcement, the narrative of the industry will change and more value will be created.
“When the insurance sector is vibrant, it enables businesses and entrepreneurs to take risks which are part of the economic growth,“ he said.
According to him, the challenges insurance in Africa include lack of trust and lack of appropriate information to policyholders.
The economist said there was need for operators to provide adequate information to policyholders and prospective insurance customers and clients to increase insurance penetration .
“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, ” he said .