Nigerian insurance underwriters have been asked to design bespoke products that meet the needs of the Micro, Small and Medium Enterprises (MSMEs) operators to assist them in fulfilling their role as the bedrock of the economy.
Lagos Governor, Babajide Sanwo-Olu at a sensitization workshop on insurance for MSMEs organised by the National Insurance Commission (NAICOM) sought friendly, accessible insurance products that are free from technicalities to grow the segment of the economy
The Commissioner for Insurance, Sunday Thomas in agreement with the request, assured of insurance protection for the MSMEs sector which he described as too important to be neglected owing to its strategic importance in the economic development of a nation.
Sanwo-Olu, who was represented by the Commissioner for Finance in the State, Rabiu Olowo, also called on MSMEs to procure insurance as means of business protection in view of challenges that are associated with their business.
He commended NAICOM for organising the workshop to promote the culture of insurance among individuals and businesses in the state especially for MSMEs which account for nearly 49 per cent of the nation’s gross domestic product (GDP) and contributes about 90 per cent of the nation’s employment.
According to him, the state government can not afford to ignore the challenges confronting MSMEs and threatening their survival. “That is why we describe our MSMEs as very resilient, if you can do business in Nigeria and thrive, there is no where you can not thrive” he said.
“We have launched so many initiatives and strategies and are still implemented towards providing an enabling environment for MSMEs to not only thrive but to succeed.”
As laudable as these initiatives the sustainability of the anticipated gains can not be fully guaranteed without a safety net against unforseen circumstances”
As a guaranteed approach to protect small businesses against unforeseen seen losses and circumstances that may threaten their operations, the Governor stated that securing insurance cover must be encouraged.
He called on insurance companies to ensure that insurance policies designed for MSMEs “must meet their needs and also address the peculiarities of their businesses.”
“There should be specially designed products that will meet their category, income, operations and processes such must be affordable and free of technicalities so that it can be easily understood with assurance of settlement of claims,” he said.
” I enjoin all MSMEs in Lagos State to embrace insurance as safety net against losses that might be suffered as a result of unforseen circumstances,” he requested.
The Chairman, Nigeria Insurers Association (NIA) Ganiyu Musa represented by the Director General, Yetunde Ilori assured the MSMEs of insurance industry’s readiness to work with the them to drive the growth of the sector
Musa, urged MSMES to embrace insurance adding that “the era of it is never my portion is over. We are ready to work with you . I am happy that Lagos State Government has given us a platform to work on”, he said.
The Insurance Commissioner, Thomas noted that the encouraging responses by the small business owners validate that the products meet a critical need also that the appetite for players in the MSMEs sector to succeed sustainably is high.
NAICOM emphasized the importance of MSMEs to national development, noting that “the importance of MSMEs to national development cannot be overstated. It is indeed the fulcrum of a nation’s growth and development.”
While calling on MSMEs to embrace insurance as a risk mitigating factor against unforeseen circumstances as well as the inherent benefits of insurance, Thomas said “The good thing which is our message to you today is that insurance will provide you the shock-absorber to withstand any of these unforeseen calamities when they do occur and help your reinstatement in business.
”The NAICOM is committed to our mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs.”
The NAICOM boss enjoined the MSMEs to approach any of the 59 companies; 510 insurance brokers; four Microinsurance companies and four Takaful companies licensed by NAICOM for an appropriate and adequate insurance policy that meets their needs.
Thomas commended Lagos State government’s effort in ensuring the growth of MSMEs, adding that “Lagos state is a key stop for us for obvious reasons; first, Lagos has been Nigeria’s nerve center of commerce, the State hosts the single largest number of, MSMEs in the country, put at 11.5% of total. (NBS 2019)
“Secondly, and more important, the current and past administrations of this state have demonstrated a continuous commitment to sustaining MSME growth.
“Specifically, the constellation of deliberate polices, special programmes and projects, in collaboration with various agencies to boost capacity, access credit, enable trade are all commendable. Some of the State efforts that readily comes to mind and which have been supportive to the Federal Government efforts are: The Lagos State MSMEs Exclusive Fairs; The N220 billion Micro, and Medium Enterprises Development Fund (MSMEDF) to cushion the impact of COVID 19 and Other State intervention programs.”
All of these efforts, according to NAICOM boss, represent both the will and action to engender MSME growth.
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