Oyedeji made this statement at the ‘Insurance Roundtable’ organised by Ecobank Nigeria/Securities, Wealth & Asset Management (SWAM), Ecobank Capital, she said the lender would continue to take steps that promote insurance penetration in the country.
The managing director disclosed that Nigerian insurance industry has huge potentials that are largely untapped.
According to her, the insurance roundtable was set up to be a forum that would bring all insurance companies together to discuss the market and pertinent issues in the industry.
“One of the things we know in Nigeria is that the insurance industry has lots of potentials, but has always remained in the infantry stage where the development of the market has struggled over time. So, at Ecobank Nigeria, we saw this as opportunity for them to discuss,” she said.
Speaking further, she said: “There is need for more collaboration between the insurance and banks. Although the regulator has advised on the Bancassurance, one of the things we think is the way outside the regulator’s imposed collaboration is that practitioners need to make sure that the collaboration comes as improved synergy to see how well we can cover the entire Nigeria, especially the masses. If you look at the demography of Nigeria, 50 per cent of Nigerians are working class and they need to be insured against loss of life, critical illnesses, among others,” she said.
Continuing, she said that: “If a merger happens in the market, which I think needs to happen, I think in the long term, insurance would be a buy for me. I think a lot of time, what has happened in the industry is the mis-selling by the agents. A lot of agents in order to meet their targets, sell the wrong insurance and you don’t know. You keep paying for that insurance until when it is time to claim the insurance”.
Also speaking, the bank’s Executive Director, Corporate Banking, Akin Dada, said tapping the opportunities in the insurance sector is good for the economy.
Dada said there is need for the bank to work with the insurance companies to break the barriers of insurance penetration.
“Insurance penetration has always been a major barrier. We are working with the insurance companies to see how we can unlock the opportunities in the sector. Tax incentive will enhance awareness in the sector and will help to boost insurance penetration in the country,” he said.