The national vice president of the Association of Registered Insurance Agents of Nigeria (ARIAN) and senior agency manager at the NSIA Insurance Limited, Mr. Jegede Olatunji, has spoken of the need to create insurance awareness and deepen its penetration in the country
Addressing members of the Finance and Business Online Publishers (FiBOP), Olatunji outlined the crucial role insurance plays in the lives of individuals and corporate entities.
“As insurance awareness grows, efforts are being made to reach out to the informal sector, which is increasingly recognizing the importance of insuring their products and assets.
“Insurance provides individuals and businesses with financial security against potential losses caused by accidents, theft, natural disasters, or health-related issues. It acts as a safety net, ensuring that policyholders are not financially devastated when unforeseen events occur.
“By transferring risks to insurance companies, individuals and businesses can focus on their core activities and goals. Insurance experts assess and manage risks on their behalf, allowing policyholders to navigate their daily lives and operations with greater confidence,” Jegede stated.
For businesses, the ARIAN vice president said “insurance plays a vital role in ensuring continuity. In the face of major losses or liabilities, insurance coverage provides funds for repair, replacement, or compensation, helping businesses recover and resume operations. This stability safeguards jobs and contributes to the overall economic health of the nation.
“This action of Insurance firms offers the individual and businesses peace of mind by reducing uncertainty and anxiety, providing protection against potential risk and allowing policyholders to concentrate on their daily activities without constant worry about financial setbacks.”
He further outlined the importance of insurance to include the stability of the economy by sharing and distributing risks, preventing the concentration of financial losses on individuals or businesses, maintaining economic balance and preventing severe disruptions.
Regarding life assurance, Jegede said it provides financial security to individuals and their families in the event of the policyholder’s death, and ensures that dependents are financially supported to maintain their standard of living after the policyholder’s passing.
“It can facilitate effective estate planning by allowing individuals to allocate funds for inheritance, pay off debts, cover funeral expenses, and provide for future generations and ensuring a smooth transition of wealth and assets.
“Certain life assurance policies Olatunji declared offer investment components that allow individuals to accumulate wealth over time. These policies can serve as a retirement planning tool, providing individuals with a source of income during their post-employment years,” he added.
