Experts in the insurance industry have attributed low insurance penetration in the country to poorly-tailored products for Micro, Small and Medium Enterprises , therefore, urging underwriting companies to provide the sector with needed solutions.
The president/chairman of the Council, Edwin Igbiti, said the MSME sector is a key pillar and contributor to the nation’s Gross Domestic Product . “Despite the critical position of MSMEs in the socio-economic development of Nigeria, the insurance sector recognises that they face various hurdles that negatively affect their sustained growth, including limited to no access to funding, business training, formal credit, infrastructure deficit and more. This is where insurance comes in to assist in indemnifying the risks identified in this market.
“Rethinking the role of MSMEs is crucial to the penetration of insurance in Nigeria. The sector is the missing link in expanding the frontiers of the insurance market. The market should be relied on to boost the adoption level of insurance even as marketing, advertising, and branding should be invested more in the insurance industry.”