BY NKECHI NAECHE-ESEZOBOR--Vice President, Professor Yemi Osinbajo said he expects to to see more well capitalised insurance providers from other African countries coming to compete in the Nigerian market.
Speaking virtually at the opening ceremony of the recently held 47th African Insurance Organisation (AIO) Conference and Annual General Assembly, in Lagos, he noted that services can be set up faster than manufacturing plants.
He said ” Nigerian financial services companies, especially banks, are already in many African Countries, the likes of Zenith, Access, UBA. How about Insurance companies? We should now be looking at developing homegrown international African insurance conglomerates. The time is now.”
He maintained that there will obviously be opportunities for new insurance products and solutions, especially, in the property and casualty segment of the business.
He added that insurance companies must also be prepared for the systemic nature of climate induced damage, with the possibilities of market failures and more system-wide destabilisation.
He also called on Insurers to take advantage of the potential income gains of up to $450 billion in the African Continental Free Trade Area (AfCFTA).
While noting that just cutting red tape and simplifying customs procedures alone could drive up to $250billion of that sum.
He urged them to leverage on the AfCFTA to increase productivity, adding that every smart economic grouping, whether governments or businesses, must be thinking, planning and strategizing for these new times.
“The free trade agreement presents a major opportunity for African countries. By some estimates, if we get it right, we can bring several millions out of extreme poverty and raise the incomes of 68 million others who live on less than $5.50 per day.
“So, what does all this mean for the insurance industry in Africa? Well, plenty of opportunities. More trade in goods will mean greater need for insurance services, brokers, in particular, should expect a boom; demand for trade facilitation services will rise, but obviously companies that already have market presence in other African countries, even if by collaboration, will benefit more than others.”
