Nigeria: CBN Urges Financial Operators to Diversify Products

Jul 10, 2018 | Vanguard; AllAfrica

The Central Bank of Nigeria (CBN), has urged insurance operators in the country to ensure diverse insurance products to enable more citizens to key into insurance.

Mrs Temitope Akin-Fadeyi, the Head, Financial Inclusion Secretariat, CBN, gave the advice at the ongoing National Insurance Conference on Monday in Abuja. According to Akin-Fadeyi, the importance of insurance cannot be overemphasised as it can be used in all financual services. She said the CBN, and other stakeholders had been on the vanguard of searching for ways of expanding insurance penetration in the country. She said segmentation was key to reaching the financially excluded and urged operators in the industry to leverage on micro insurance to grow the bottom of the pyramid in the country. "Segmentation is important as there are customers that are at the bottom of the pyramid, the poor, and people at the grass root. "As we develop products, there is a strong call for the non-interest insurance because no matter how we package insurance, some people for religious reasons will not key in. "So as we push micro insurance, we need to also sell the non-interest component like the "takaful insurance because we know that a strong set of our population believe in that way of life. "At present, we do not have many operators today that are pushing that form of insurance. "So as we are considering expanding the insurance industry and financial inclusion, let us put that into consideration." According to her, financial inclusion is about expanding the space, bringing more people into the formal economy. Akin-Fadeyi said insurance penetration which was said to be just about two per cent of Nigeria's population could be increased if the right cover and various options were offered to Nigerians. She urged stakeholders to also key into the bank assurance framework to help achieve financial inclusion in the country. Read more on AllAfrica. Source: AllAfrica