By Mattew Ayoola
The Abuja Chamber of Commerce and Industry, ACCI, has stressed the need for insurance for Small and Medium Enterprises, SMEs towards safeguarding businesses and enhance the growth of the sector.
The Director General of the Chamber, Mr Agabaidu Jideani stated this at the Webinar On Insurance for SMEs organized by the National Policy Advocacy Centre, NPAC. of the Abuja Chamber of Commerce, ACCI.
Mr Jideani said as the policy hub of the ACCI, NPAC remained committed to advocating for the business community and equipping enterprises with the knowledge and tools necessary to navigate today’s increasingly unpredictable business landscape.
“Businesses, irrespective of their size, are exposed to a myriad of risks, including natural disasters, financial crises, and other unforeseen challenges. Such disruptions can severely impact business operations and, in extreme cases, threaten their very survival and unfortunately, many enterprises in Nigeria, particularly small and medium-sized businesses, do not consider insurance a fundamental risk management strategy” He stated
According to him, this gap leaves them highly vulnerable to economic shocks and through this webinar, our objective is to bridge this knowledge gap by enlightening SMEs on the strategic significance of insurance, dispelling common myths, and offering practical guidance on selecting the most suitable insurance products.
In his words “A deeper understanding of insurance will undoubtedly strengthen the resilience and sustainability of Nigerian businesses and I urge all participants to engage actively, ask pertinent questions, and take full advantage of the expertise of our distinguished speakers”.
“The insights gained from today’s discussions will not only safeguard your businesses but also contribute to the broader economic stability of our nation. Furthermore, we assure you that the recommendations from this webinar will be conveyed to the relevant authorities to inform policies that will foster business growth and development.
In his keynote address, the Chief Executive Officer of National Insurance Commission, NAICOM, Olusegun Omosehin said the theme of the webinar “Can SMEs Still Afford Not To Insure Their Business?”, was apt in view of the current economic challenges in the country.
Omosehin who was represented by the Head of Microinsurance in NAICOM, Aisha Bashir stated that the difficulties and opportunities confronting the nation’s economy today. MSMEs are the backbone of any economy, including Nigeria’s.
“Despite their economic importance, MSMEs confront several obstacles that could jeopardize their long-term viability, including unanticipated hazards such as fires, theft, health emergencies, natural catastrophes, and even the death of key individuals” He explained
In his words ‘For MSMEs which often operate on tight margins, the ability to recover from a calamity or unforeseen incident can be the difference between survival and failure; thus, the importance of insurance in guaranteeing the longevity and sustainability of these enterprises cannot be overemphasized”.
“Insurance provides a key safety net for MSMEs, shielding them from a variety of hazards that would otherwise result in the loss of assets, income, and, in some cases, their very survival. Given these dangers, MSMEs must have systems in place to secure their operations, assets, and assure business continuity. Insurance plays a significant role in national economic growth and corporate stability, particularly for MSMEs, some of which include” Omosehin stressed.
“As the regulatory authority for the insurance sector in Nigeria, NAICOM is committed to ensuring that insurance becomes accessible, affordable, and understandable for MSMEs across the country”
“As we recognize the unique needs of MSMEs, especially microenterprises, we must also acknowledge the barriers to accessing traditional insurance products and high premiums, complex terms, and the lack of understanding of insurance products have long deterred many MSMEs from engaging with the formal insurance market”
“In this regard, we have taken several steps: which include; Issuance of Microinsurance guidelines; Recognizing the need to make insurance more accessible, NAICOM developed a framework for microinsurance to incentivize insurers to develop products and business models targeted at the unserved/underserved segments”
Micro insurance is Insurance developed for low-income populations, low-valued policies, and Insurance for micro and small-scale enterprises, provided by licensed institutions, run by generally accepted insurance principles and funded by premiums” He added
