Elumelu Urges Overhaul of Nigeria's Insurance Sector - The Top Society

Elumelu Urges Overhaul of Nigeria’s Insurance Sector

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Chairman of Heirs Holdings Group, Heirs Insurance Group & UBA Group, and the visionary founder of The Tony Elumelu Foundation, Tony O. Elumelu,  has stressed the immediate necessity for a comprehensive restructuring of Nigeria’s insurance industry.

This was done on Monday during his compelling keynote speech on the theme: Redefining Safety. Insurance Solutions for Public Buildings and Buildings under Construction, at the 2023 National Insurance Conference at the National Insurance Commission, Abuja.

Speaking to a distinguished audience of industry experts and regulators, Elumelu underscored the critical role of insurance in the nation’s economic development and the pressing need for innovative, accessible, and comprehensive insurance solutions for public buildings and constructions.

Highlighting the dismal state of Nigeria’s insurance sector, Elumelu expressed deep concern over the sector’s marginal contribution to the country’s GDP, standing at less than 1%.

“This is worrying, Nigeria is a country of 200 million people, who all need insurance products, whether for health, protecting lives and livelihoods or savings,” he noted.

He stressed that the sector’s current trajectory fails to align with the nation’s growth ambitions and the aspirations of its 200 million inhabitants.
Drawing parallels with successful insurance models in countries like the USA, UK, Netherlands, South Africa, Ghana, and Kenya, Elumelu called for a comprehensive and multi-sectoral approach to address the root causes of building collapses and insufficient insurance penetration.

“This philosophy of Africapitalism guides our investment strategy across our Group and we invest long-term in sectors that are most strategic and can catalyse economic growth and create social wealth for the communities and countries we operate in.

“This is why we invested in the Insurance sector. We ventured into the Insurance space in 2021, because we saw the opportunity to significantly contribute to the transformation of the sector and I must say that it has been exciting to see our Heirs Insurance Group quickly become the fastest growing insurance Groups in Nigeria.

“But there is more to do. Insurance in Nigeria needs to play the kind of role it plays in mobilising investments and protecting lives in other countries such as the USA, UK, Netherlands, and closer to home in South Africa, Ghana, and Kenya.”

Elumelu’s address touched upon various crucial points, outlining a roadmap for revamping the insurance industry. He emphasized the need for a legislative overhaul, urging the revision of the Insurance Act of 2003 and the enforcement of compulsory insurance for public buildings.

Elumelu advocated for a cultural shift within the industry, urging practitioners to prioritize efficient claims settlements, foster public trust, and instill confidence in insurance services. He called for enhanced regulatory measures that would streamline processes and encourage industry-wide innovation, including a push for greater insurance awareness campaigns nationwide.

Elumelu

Furthermore, Elumelu underscored the imperative of recalibrating the mindset of insurance practitioners and attracting young talent into the sector. He proposed an increase in capital requirements, suggesting that a robust financial backbone is vital for the sector’s growth and expansion.

Elumelu’s passionate plea to the government and regulators underscored the need for a proactive and enabling environment that prioritizes the accessibility and affordability of insurance, positioning it as a fundamental right for every Nigerian citizen.

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As the conference drew to a close, Elumelu’s stirring address left a resonating call to action for stakeholders, emphasizing the urgency to revolutionize Nigeria’s insurance sector, ensure sustainable economic growth, and provide a secure future for all citizens.

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