Micro-insurance 'could help tackle poverty in Nigeria'

Nov 01, 2012

Expanding Nigeria's micro-insurance sector could be a good way of reducing poverty across the country, officials have stated.

The National Insurance Commission (NAICOM) held a one-day stakeholders' workshop on micro-insurance on Wednesday, October 24, in partnership with Access to Insurance Initiative (aii), GIZ and Making Finance Work for Africa (MFW4A). According to NAICOM, there is lots of room for the micro-insurance market to expand, the Leadership reports. Fola Daniel, commissioner for insurance at the group, said this could in turn mean more people in Nigeria are able to enjoy sustainable livelihoods.

"From empirical findings, it has been proven that low-income earners can use micro-insurance, where it is available, as one of several tools to manage their risks," he commented.

He went on to point out that NAICOM has drawn up plans that could facilitate growth in the micro-insurance market in the future.

Mr Daniel described insurance as a business that relies heavily on trust. This, he said, means clients need to be confident they are being offered fair products and prices and that claims are dealt with straight away.