‘African low insurance penetration worrisome’

Juliana Agbo, Abuja

THE Minister of Finance, Hajia Zainab Ahmed has lamented the low penetration and insurance density in African countries, which she said is very worrisome

She said the average per capita spending on insurance (density) in emerging markets was 169  in 2018 and insurance penetration (premiums/GDP) was 3.2 percent.

Ahmed made this known on yesterday in Abuja at the general assembly of the Association of African Insurance Supervisory Authorities (AAISA) workshop with the theme: ‘Index-based Agricultural Insurance.

Ahmed who was represented by the Acting Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Sunday Thomas noted that in the recent Sigma report on insurance, an uptrend can be seen in most regions, except in the life sectors of emerging Europe, the Middle East and Africa.

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“One of the priority sectors in the diversification strategies of the economy from an oil-dependent economy is the Agricultural Sector which has also recorded sustainable growth and development.

“It is informative to state that a veritable approach towards a healthy competitive private sector economy is the enhancement of the structure of government-led supervisory framework.

“The United Nations projects that Nigeria’s population will double in 2050 and only a competitive private sector economy can help the country achieve a rising standard of living and economic prosperity.

“Nigeria has the capacity to modernize its economy in a way that all firms can achieve more sophisticated competitive advantages and higher productivity,” she added.