Home Insurance ‘Insurance Sector Needs Govt Support–Mutual Benefits Chairman

‘Insurance Sector Needs Govt Support–Mutual Benefits Chairman

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Dr. Akin Ogunbiyi

Chairman

Mutual Benefits Assurance Plc

Dr. Akin Ogunbiyi, Chairman, Mutual Benefits Assurance Plc has called on government at all levels in Nigeria to support and patronize the Nigerian insurance industry to achieve its objective, support the nation’s economy, ensure returns on investments as well as achieve capital adequacy.

Ogunbiyi made the call at the 2020 National Conference of the National Association of Insurance and Pension Correspondents (NAIPCO), with the theme ‘Promoting Bankable Investments Portfolio for Insurance and Pension Sectors’ in Lagos.

He said the insurance industry can achieve adequate return on investment and capital adequacy ratio through support and patronage of the Nigerian Insurance industry by government at all levels and also by ensuring reduction of sharp practices to its barest minimum.

While noting that the industry can accumulate retain earnings and shareholders’ funds on a sustainable basis through good corporate governance and adaptive leaders that recognize and respond to insurance needs and relevant adjacencies, he said the industry also requires commitment and dedication from all of us to achieve survival, growth and profitability.

Ogunbiyi who was the NAIPCO website Chief Launder, said the financial assets such as debt and equity instruments as well as money market and equity funds are returning low yield, adding that as a result of the prevailing not too favourable investment climate, capital preservation yields are not as profitable as before.

He noted that though inflation at 13.9 percent, one loses money in real terms as fixed income may guarantee cash flows, but with negative profitability.

“I want to submit that we can achieve adequate return on investment and capital adequacy ratio through support and patronage of the Nigerian insurance industry by government at all levels and reduction of sharp practices to its barest minimum. We can accumulate retain earnings and shareholders’ funds on a sustainable basis through good corporate governance and adaptive leaders that recognise and respond to insurance needs and relevant adjacencies. We require commitment and dedication from all of us to achieve survival, growth and profitability,” he pointed out.

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