Stakeholders in the insurance industry have attributed the lull in the economy to infrastructure deficits, explaining that the ecosystem calls for a deliberate effort to close the existing gap between the sector’s contribution and need for economic growth.
The stakeholders agreed that there is a link existing among underwriting activities, infrastructure development and economic growth.
The Group Managing Director of NEM Insurance Plc, Tope Smart, at one of the industry forums in Lagos with other economy experts, affirmed that research has shown the linkage among insurance, infrastructure and economic growth, adding that they also lead to good quality of life and improvement in mortality rate and consequently, reduce death claims under life insurance.
“Infrastructural development is pivotal to insurance growth, even as insurance remains the backbone of any economy due to the basic role it plays, which is to restore people, firms, and government to the position they were before the occurrence of any peril”, he said.
He contended that good roads will reduce the number of accidents, thereby, leading to reduction in claims on motor insurance, goods in transit insurance and Group Personal Accident Insurance, among others, but ultimately, lead to a better, stronger and healthier insurance industry.
“In addition, availability of data helps in the generation and preparation of good statistics that are useful in preparing rate guide for insurance. Good infrastructure will ensure this,” he stressed.
Saying it is very obvious that investment in infrastructure will result in the growth of the economy of any nation, he added that the attendant insurance needs resulting from such economic growth will be to the benefit of the industry.
