Economic recession: Insurance industry never record any retrenchment…NAICOM
As Nigeria continues to experience economic recession which is currently biting hard on people and business, the National Insurance Commission (NAICOM) has disclosed that the insurance industry had never record any retrenchment since its inception.
Giving an overview of 2016, at a seminar for insurance corespondent organized by the commission in Gombe, the Commissioner for Insurance, Mohammed Kari opined that insurance industry like every other sector of the nation’s economy had experience of the hard times adding that the good news about that was that there was no retrenchment in the insurance industry within the period.
“We started well but as far as 2016 is concerned insurance industry, being operator in the same Nigerian economy, I can say we have had mixed report .
The first quarter seemed to be doing well and suddenly in the second quarter, business kind of slowed down and insurance premium, you know is a factor of how well the consumers are doing, at still we have not got at the point of enforcing the compulsory classes, the point where we will know whether there is recession or no recession.
But those risks are permanent, just because of the recession most will not sell their cars but will pack it and may reduce the third party, fire and but they will not necessary sell the building, the car, which they get income from.
He however noted that after the first quarter, insurance industry like other sectors started witnessing the bite of the economic recession which he attributed to people approach and reactions to situations around them.
“After the first quarter of the year, we thought this is our best year ever but then like the first speaker said, you could have cancer but you will be leaving a life without knowing you have cancer but the day we said you have cancer, you start thinking of death and everything happens.
Our economy has not been good, but the moment we say we have recession then everybody stars panicking and could effect business, it a psychological thing. Even the big employers and big financial organizations are retrenching but the only good thing is that I have never heard about any insurance company that have retrenched because of recession, so the signs are not that bad”, he assured.
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