Inflation, Economic Recession: Time To Take Insurance … NAICOM
By Ngozi Onyeakusi– — Giving inflation and economic recession in the country, the National Insurance Commission, (NAICOM) has charged Nigerias to take up insurance.
The Commissioner for Insurance, Mr. Sunday Thomas who gave the charge at a webinar organised by Coronation Insurance Plc in partnership with Access Bank Plc, with the theme: “Managing Business Risks at a Time of Uncertainty”, noted that giving the inflation and recession in the economy, which made people to reduce cost, this is not the time to ignore insurance.
“Because there is inflation and recession in the economy, the tendency to reduce cost is high. Despite the biting inflation in the country, as people reduce the cost of expenses, this is not the best time to reduce insurance”, he cautioned.
Thomas, who was represented by his Technical Adviser, Mr. Taiwo Adeoye, stated; “Sometimes what we gain in terms of reducing cost could even be less in terms of what we lose. You could say that this is not the time to take up insurance, or this is not the time to insure some assets, but at the end of the day, you may end up eating into your portfolio or bottom-line to be able to find your footing and sustainability.”
“It is good to have a good risk management framework as well as be able to manage our insurances and assets. Many are left with the option of cutting cost, however not all cost-cutting will measure success and some might even end up hurting our businesses.
“As business owners and as businesses spring up, we must ensure that we put the right processes in place in trying to manage our assets and ensure that we have more strategic thinking.
“Risk is part of our business endeavours and the best thing is to evaluate and see what part of the risk you can transfer. The insurance industry has proven its relevance in the affairs of the economy”, he said.
He commended Coronation Insurance Plc collaboration with Access Bank Plc, saying that their partnership had come to alien with the commission’s campaign of financial education and inclusiveness.
Earlier in his presentation , the Group Managing Director of Continental Reinsurance, Dr. Femi Oyetunji, stated that risk is anything that brings uncertainty into the achievement of objective.
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