The Committee on Insurance and Pensions of the Nigerian Bar Association section on business law has expressed its support to the drive for insurance penetration in Nigeria.
A statement obtained from the committee said that the growth of insurance promotes economic growth and vice versa, and that this growth increases the opportunities for legal practitioners in the insurance industry in particular, and the economy in general.
It added that the committee and other stakeholders will brainstorm on the way forward during its upcoming seminar on the role of law and regulation in insurance growth and penetration, which will cover topics such as: Insurance law practice: Beyond the status quo; Insurance penetration: The role of law and regulation and innovation; Law and regulation in insurance: Strange bedfellows.
The Chairman of the committee, Mr. Dominic Ichaba, said that experts in law, insurance, regulation and innovation would address the vital subjects.
He said, “Laws and regulations on compulsory insurance and their enforcement are crucial to driving insurance growth and penetration. Laws and regulations, which promote and encourage innovation in product and channel development, will go a long way in the growth of insurance in Nigeria.
“The attitude of insurance practitioners in leveraging the legal and regulatory framework to drive growth is equally essential.”
While noting that lawyers, like many other professionals, “are interested in the opportunities available to them in the insurance industry,” he said there were several opportunities in the insurance industry for both in-house and external lawyers, and that growing the industry would provide more opportunities.
He said that a number of factors had been attributed to the low rate of insurance penetration in Nigeria.
While several factors contributed to the growth of insurance, he added that the committee was convinced that law and regulation played a significant role.
He explained that insurance penetration was measured by the contribution rate to the Gross Domestic Product of an economy.
“Insurance penetration in Nigeria is one of the lowest in the world. Even in Africa for instance, South Africa has a 12 per cent penetration rate while Nigeria is less than one per cent,” the statement added.
This article was earlier published here