Nigeria needs to subsidise micro-insurance sector to ensure success, says consulting firm

Apr 17, 2014

Global consulting firm MicroInsurance Centre has said micro-insurance requires subsidy from the government to be able to succeed in Nigeria.

Global consulting firm MicroInsurance Centre has said micro-insurance
requires
subsidy from the government to be able to
succeed in Nigeria.

Michael McCord, its President, said that no company can accumulate adequate premium to break even and make
a
profit by
charging a commercial rate for micro-insurance products and services without government support, This Day reports.

He added that there is no
micro-insurance company in Nigeria that has broken
even and from his experience with other countries, it is only with a
government subsidy that these companies can succeed.

Micro-insurance is targeted as the means to bring insurance protection to the poor and low income earners in Nigeria. According to the Chairman of the Microinsurance Network, the sector is expected to double by 2020 as governments, insurance companies and providers world-wide broaden the geographic scope and range of insurance services available.

“Micro-insurance, which currently provides coverage to 500 million people, could pass the one billion mark by the end of the decade,” he told This Day.ADNFCR-2976-ID-801713424-ADNFCR