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Insurance Sector to Experience Reform
- By Kayode Ogunwale
- Published March 15th, 2010
- StockWorld
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DR Mansur Muhtar , minister of finance, has vowed that the nation’s insurance industry will soon experience reforms akin to what is going on in the banking industry, stressing that the insurance business is of significant importance for economic development.
Muhtar speaking at the public presentation of BGL Research and Intelligence publications in Abuja last week said government will not allow unwholesome practices to deter the growth of the sector.
The minister of finance who launched the BGL Banking Report; Getting banks to lend again, commended the ingenuity of the management of BGL in producing the five reports to promote intellectual discourse and even debate as an essential platform for the new paradigm of investment banking, banking, finance and economics in Nigeria.
According to him, the publications would provide fresh perspective and insight for the private sector and also make governance more transparent.
He noted that the excruciating reform in the banking sector is a price to be paid for the nation to attain economic stability through a sound banking system.
He however, disclosed that government’s searchlight would soon beamed towards the nation’s insurance sector to bring sanity to the industry in a manner similar to what is happening now in the banking sector.
Muhtar noted the huge pool of resources in the insurance sector which he said should be protected by government in the interest of the insuring public and the nation’s economy at large.
He however, disclosed that the process of sanitizing the insurance sector has already started.
Albert Okumagba the group managing director and chief executive officer of BGL Plc, bemoaned the state of the nation’s insurance industry where he said with its estimated population of about 150 million, studies have shown that of the estimated 20 million people in formal and informal employment across Nigeria, less than one million hold personal insurance policies.
Renowned for its underperformance and low capacity, he noted with dismay that the Nigerian insurance industry has been highly under-penetrated especially when compared to other African markets.
Muhtar speaking at the public presentation of BGL Research and Intelligence publications in Abuja last week said government will not allow unwholesome practices to deter the growth of the sector.
The minister of finance who launched the BGL Banking Report; Getting banks to lend again, commended the ingenuity of the management of BGL in producing the five reports to promote intellectual discourse and even debate as an essential platform for the new paradigm of investment banking, banking, finance and economics in Nigeria.
According to him, the publications would provide fresh perspective and insight for the private sector and also make governance more transparent.
He noted that the excruciating reform in the banking sector is a price to be paid for the nation to attain economic stability through a sound banking system.
He however, disclosed that government’s searchlight would soon beamed towards the nation’s insurance sector to bring sanity to the industry in a manner similar to what is happening now in the banking sector.
Muhtar noted the huge pool of resources in the insurance sector which he said should be protected by government in the interest of the insuring public and the nation’s economy at large.
He however, disclosed that the process of sanitizing the insurance sector has already started.
Albert Okumagba the group managing director and chief executive officer of BGL Plc, bemoaned the state of the nation’s insurance industry where he said with its estimated population of about 150 million, studies have shown that of the estimated 20 million people in formal and informal employment across Nigeria, less than one million hold personal insurance policies.
Renowned for its underperformance and low capacity, he noted with dismay that the Nigerian insurance industry has been highly under-penetrated especially when compared to other African markets.
