Minister of Finance, Budget and National Planning Mrs. Zainab Shamsuna Ahmed has said the federal government is worried by low insurance penetration rate and has introduced measures to ramp it up especially among farmers and the poor.
The minister stated this in Abuja at the general assembly of the Association of African Insurance Supervisory Authorities (AAISA) and workshop themed ‘Index-based Agricultural Insurance’.
She was represented at the event by the acting Commissioner of Insurance, Mr. Sunday Thomas.
She said: “Nigeria in recent times, introduced some policies that are intended to deepen penetration of insurance in the country.
“Some of these initiatives include the following: recapitulation of the insurance industry, intended to strengthen the financial position of the companies, encourage consolidation, reduce the risk of insolvency and protect policy holders.”
The minister also said “being conscious of the need for liquidity and asset building in the insurance sector, the no premium, no cover was introduced to reduce outstanding premium in the sector, improve liquidity of insurance companies and claims payment.”
Another initiative, she said, is to drive financial inclusion through micro insurance and Takaful insurance.
Ahmed also said the index-based agricultural insurance is another milestone that is enabling small holder farmers to benefit from insurance.
She minister noted that enforcement of the compulsory insurances is also driving insurance penetration.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
