Include MSMEs In Your Insurance Products, LASG Tells NAICOM

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LAGOS State has recommended that insurance companies in Nigeria should consider providing a special cover for Micro, Small and Medium Enterprises (MSMEs).

Lagos State Governor, Babajide Sanwo-olu, made this known at a sensitisation workshop on insurance for MSMEs organised by NAICOM in Lagos State.

The Governor, who was represented by the Commissioner for Finance Dr. Rabiu Olowo, said MSMEs contributes about 50% of the nation’s GDP and 80% of employment.

According to him, Lagos State cannot afford to ignore challenges faced by MSMEs.

He said “That is why we describe our MSMEs as very resilient. If you can do business in Nigeria and thrive, there is nowhere you cannot thrive.

“We have launched initiatives and strategies and implemented them towards providing an enabling environment for MSMEs not only to thrive but also to succeed. As laudable as these initiatives are, the sustainability of the anticipated gains cannot be fully guaranteed without a safety net against unforeseen circumstances.”

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The Governor stated that as a guaranteed approach to protecting small businesses against unforeseen losses and circumstances that may threaten their operations, insurance policy should be encouraged.

He advised that insurance companies review the policies designed for MSMEs to meet their needs and also address the peculiarities of the industry.

“There should be specially-designed products that meet their categories, incomes, operations, and processes. Such must be affordable and free of technicalities so that they can be easily understood,” he said.

The Commissioner for Insurance, Sunday Thomas, said that NAICOM would remain committed to its primary assignment of providing meticulous oversight to the insurance sector towards instant settlement of genuine claims when an insured event occurred.

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“I dare say that the MSMEs sector is too important to be neglected as it is key to the economic development of the nation and thus must be guided and protected against failure. The encouraging responses validate that the products meet a critical need and that the appetite for players in the MSMEs sector to succeed sustainably is high,” Thomas said.

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