Why insurance contribution to GDP should rise — Elumelu

The Chairman of Heirs Holdings and founder of the Tony Elumelu Foundation, Tony Elumelu, has called on the federal government and players in the insurance sector to collaborate in raising the contribution of the insurance sector to the Gross Domestic Product (GDP).

Elumelu made the call at the formal launch of the Heirs Insurance and Heirs Life as well as the inauguration of the Heirs Towers at Victoria Island, Lagos.

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He said: “We believe that our economy is the biggest in Africa, yet Insurance to GDP is very insignificant. We need to work with the regulator and the finance ministry and all stakeholders to make sure that insurance to GDP becomes respected.”

The annual contribution to GDP by the Finance and Insurance Sector, which consists of Financial Institutions and Insurance, stands at 3.36 percent, according to the National Bureau of Statistics (NBS).

Speaking on the formal launch of Heirs Life and Heirs Insurance, he said the journey that started seven years ago has finally come to fruition.

“It is good when our policymakers, regulators and public sector leaders begin to understand that for us to create employment that our people dearly need, the three must work together,” he said.

The business mogul said with the license, the company would create more job opportunities, add to our tax revenue and create more economic activity.

Governor of Lagos State, Babajide Sanwo-Olu who commissioned the tower said: “We need to encourage the private sector because they are the real engine of growth.  We need to acknowledge that, no matter how well the government does, we certainly cannot employ everybody that needs to be employed.

“Listening to Elumelu, the GDP to Insurance is still suboptimal and with penetrations like this, we will begin to see you changing the indices and we will begin to see that number go up,” he said.