SUNU Assurances Boss Lists Benefits of Insurance Sector Recapitlisation

The Managing Director, SUNU Assurances Nigeria Plc, Mr. Samuel Ogbodu, has listed the benefits of the proposed increase in the capital of insurance firms by the National Insurance Commission (NAICOM) ,saying it will help to consolidate the sector lead to the provision of the more buoyant opportunities for large ticket transactions.

He added that recapitalization would also position insurance companies in the country as big players, instead of serving as agents to foreign insurance underwriters.

Ogbodu stated this last Friday while speaking at Lagos at the Capital Market Correspondents Association of Nigeria (CAMCAN) Quarterly Forum themed, “Deepening insurance penetration through effective broker engagement.”

The Sunu Assurances boss noted that insurance brokers would have more creative roles to play towards harnessing the benefits of the new capital base requirement.

According to him, the Nigerian insurance sector, if well positioned, would take its rightful place in the country’s economy.

He said insurance companies at the end of the recapitalisation programme would be able to take up opportunities hitherto taken by foreign companies.

Ogbodu also urged NAICOM to implement the compulsory housing and transport insurance policies to deepen insurance penetration in the country.

He noted that NAICOM was well positioned to drive the implementation of the compulsory housing policy, which was valued at over one trillion naira.

“If you look at some estates in Lekki, Ikoyi and Victoria Island alone, securing policies for them would amount to over N500 billion, and when you consider houses across the country, it will be over N1 trillion,” Ogbodu stated.

According to him, the various efforts aimed at boosting the insurance sector contribution to the Gross Domestic Product (GDP) to surpass its present 0.1 per cent level would be accelerated with the implementation of the new capital base.

Speaking on the role of insurance brokers, he said the sector’s earnings were mainly due to the contributions of the brokers.

“Without the brokers, there won’t be insurance. They contribute about 80 per cent of the earnings. We place very high premium on brokers,” he said.

He also commended the efforts of brokers in the industry in strengthening insurance penetration.

Ogbodu said that brokers helped in product development, maintenance of high vast network, enhanced negotiation, helped towards risk mitigation and help clients to stay updated on policy and regulatory developments, among others.