Pensions and Life Insurance operators are receiving vital advice from industry experts on how to propel economic prosperity and productivity through innovation. The stage for this crucial guidance was set at the 2023 edition of the eighth yearly national conference of the Nigerian Association of Insurance and Pension Editors (NAIPE).
Pensions and Life Insurance Industry Urged to Harness Innovation by Experts (Photo: Harvest Financial)
Crucial Role of Pensions and Life Insurance in Fostering Financial Growth
According to the finance news featured by The Guardian Nigeria News, in September 11, 2023, this dynamic landscape, industry leaders underlined the significance of ongoing workforce development and the adoption of technological advancements to drive growth. Shola Tinubu, Managing Director/Chief Executive Officer of Scib Insurance Brokers, reiterated the necessity for government policies and regulations that support business-friendly and growth-oriented environments for pensions and life insurance industries. Tinubu urged regulators to grant operators more autonomy in raising capital to fuel their endeavors.
“On the insurance side, capital has been driven by statutory requirements. We are talking about the regulator mandating the players to get a certain quantum of capital without creating ground for capital raising, meaning that companies have to strive for capital just to stay in business. What has happened in the various rounds that we had was that there was no creative idea for channeling the capital,” he said.
The Managing Director of ARM Pension, Wale Odutola, emphasized that every household should have access to basic pensions and life insurance plan. He noted that both insurance and pension schemes have played a significant role in improving people’s lives. In his statement, Odutola stressed the importance of pensions and life insurance in managing business risks and the contributory pension scheme (CPS) in addressing pension obligations, which ultimately fosters productivity and growth in the finance sector.
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Addressing Skill Gaps for Sustainable Growth
In a report released by Business day, “There are currently nine million people in the CPS net, and this is abysmally low when compared to the population. Hence, there is a need to get all state governments involved and the participation of the informal sector in CPS,” he said. Prisca Soares, the former Secretary-General of the African Insurance Organization (AIO), pointed out a critical challenge facing the insurance industry: a shortage of skilled manpower, particularly in the area of actuarial expertise.
This gap in expertise can hinder the industry’s progress. Solving this issue by investing in the development of actuaries and other skilled professionals is essential for ensuring the long-term sustainability and growth of the pensions and life insurance sector. As the pensions and life insurance industries continue to evolve, bridging skill gaps and fostering innovation will remain key factors in their success and their contributions to Nigeria’s economic prosperity.
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