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Expert predicts stifer competitiveness in insurance sector


LAGOS – The Managing Director, FBN Life Assurance Ltd, Mr Val Ojumah, on Monday predicted that the interest shown by foreign investors in the Nigerian insurance market would make the sector more competitive.[pro_ad_display_adzone id=”10″]
He stated this in a statement made available to the News Agency of Nigeria (NAN) in Lagos.
“The level of competitiveness in the industry is expected to rise because of the foreign interest.
“As foreign insurers are filling the gaps in the Nigerian insurance space, particularly within the retail segment, the competitiveness is expected to increase,’’ he said.[pro_ad_display_adzone id=”10″]
The managing director emphasised that foreign investors had shown interest and made strides to own stakes because of numerous potential in the Nigerian market.[pro_ad_display_adzone id=”10″]
According to him, with a thriving middle class and a population of over 168 million growing at 2.5 per cent per annum, Nigeria possesses demographics which no investor could ignore.
He said that the National Insurance Commission had continued to seek viable means of improving insurance penetration, which was below one per cent.
Ojumah said that the commission had made progress in the restructuring of the insurance industry since the financial market turbulence between 2008 and 2010.
He said that security, infrastructural limitations, under-employment and unemployment were still major challenges in the sector.
He pointed out that in spite of these challenges, the economy had remained resilient.
The economy, he said, was delivering an estimated Gross Domestic Product growth rate of 6.8 per cent.
The director recalled that the economy had emerged the largest in Africa and one of the top 30 in the world after the GDP re-basing in 2014.
He, however, noted that while insurance penetration remained low, Nigeria’s population was growing and forecast to reach 209 million in 2021.
The managing director urged underwriters in Nigeria to explore the untapped potential of a larger retail market.
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He expressed the hope that government efforts to improve the business environment and reduce inflation would result in stronger growth in the insurance sector. (NAN)

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