Experts highlight role of insurance, pension in economic development
The Managing Director/ Chief Executive Officer, APT Securities and Funds Limited, Mallam Kasim Garba Kurfi, has said that insurance and pension sectors are the engine of growth of the Nigerian economy maintaining that the role played by the two institutions in sustaining economic growth left no one in doubt that they are the vehicle that drives the nation’s economic development.
He said while delivering the theme paper on the “Role of Insurance and Pension Sectors In Building Sustainable Economic Growth Under The New Government,” at the 8th Annual National Conference of the Nigerian Association of Insurance and Pension Editors (NAIPE) in Lagos that insurance and pension sectors today stand as engines for sustainable economic growth and forces to reckon with in every economy .
Kurfi therefore called on the present administration in the country to put in place enabling policies and laws that support the survival of the sectors.
Kurfi, highlighting the contributions of the two sectors to the national economy said, “There is over N2.5 trillion assets managed by the insurance institution in Nigeria as of 31st December 2022.
“Besides, there are over N16.6 trillion assets managed by the Pension Fund Administrators as at 31st December 2022, the combination of the two institutions has a total assets hi mof over N19 trillion. The role played by the two institutions in sustaining our economic growth left no one in doubt that they are instruments for most of the economic development.
“Over N726 billion in premiums paid in the year 2022 according to the National Insurance Commission, while the industry also paid over N318.1 billion in claims to its customers within the same period. This is a remarkable achievement in comparison with 3.5% growth of Gross Domestic Product (GDP).”
He said insurance institutions give security to the future of the common people and aid economic growth upon happenings or allowance of specific event or disaster.
“Insurance represents promise of the future compensation in case of specific losses or in exchange for periodic payments called premium.
“Managing risk is very important for companies dealing with monetary or equivalent. The insurance industry promotes National development through wealth creation or protection. It primarily hedges against risk or contingent or uncertain loss.”
On pension, he said, “The contribution of pension funds that run over N16 trillion is pronounced in all phases of life. Many sectors of the economy benefit from excess funds that look for alternative ways to invest such as FGN SUKUK, GREEN BOND, and Infrastructures Bond, among many others.”
Kurfi said Pension ensures that every worker receives his/her retirement benefit as at when due. Ensure workers save in order to cater for future liability and old age. Provide long-term finance for the real sector. Stimulate the development of the capital market.
While condemning those agencies and institutions clamouring to exit Contributory Pension Scheme (CPS), Kurfi enjoined the government at all levels to discourage such moves for the interest of the Pensioners and the nation’s economy.
He said the contribution of insurance and pension sectors towards economic development is imminent and can be seen especially in driving the nation’s financial inclusion project.
