Insurance, Banking Industry Synergy Will Grow SMEs – NCRIB

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Bundles of Naira notes of various denominations

By; PETER NOSAKHARE, Kaduna

A call has been made for more synergy between the insurance industry and the banking sector, particularly in the area of Small and Medium Scale Enterprises (SMEs) for the advantage of the insurance industry.

This became necessary in view of the industry to capitalize on the nation’s increasing population which is currently put at 203 million with a total number of MSMES perching at 37 million according to the recent reports from the National Bureau of Statistics (NBS) and SMEDAN.

In a parley between the Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers, NCRIB, and the SMEs team of the First City Monument Bank, FCMB in Lagos, the banking team highlighted the key enablers which the insurance Brokers could latch on as capacity development, access to credit, access to collaborate, infrastructure and access to market which are presently being explored by the banks.

The meeting according to the National President of NCRIB, Mr. Shola Tinubu also underscored the place of Insurance Brokers with the statistics of Nigeria’s Gross Insurance Premium put at 363 billion Naira in 2017, out of which 80 percent came through Insurance Brokers.

Opportunities for insurance,  according to the FCMB team, included the Central Bank of Nigeria’s national collateral registry movable assets, increasing funding scheme for SMEs. Others are Credit Risk Insurance products which is risk sharing for local insurance players as well as need for innovative insurance products tailored to emerging sectors.

Other areas that the insurance industry could take advantage included agricultural business, renewable energy in addition to traditional sectors such as oil and gas, maritime, transport and housing.

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