Expert see brokers’ role expanding in Nigeria’s new growth phase

With new growth sectors discovered after Nigeria’s rebasing and attendant inflow of foreign investment which places the economy on part of greater development, the insurance industry and brokers particularly have been challenged to step up responsibility towards risk management.

This, expert say, is important in providing the needed support for economic growth and development across sectors, which no doubt would be confronted with more environmental and social risks.

But, also important is the need for insurance brokers to invest and build local capacity for more relevance and value creation in the new economy.

Sakiru Oyefeso, managing director, Staco Insurance plc, who made the observation at the Nigerian Council of Registered Insurance Brokers Members Evening held in Lagos, said the role of brokers in the country.

Oyefeso said other areas of the economy predicted to grow which would require insurers’ attention include renewable energy, education, tourism and health, all of which will require sophisticated insurance support if they are to take off in the way that government leaders would like them to.

According to him, Brokers with the ability and locally-based experience to provide due diligence and risk reviews can help companies to streamline their insurance portfolio; will excel in the new economy, so that cover provided ensures full asset protection at a reasonable and proportionate cost.”

“As the market evolves, the role of Insurance Brokers in the success of the Insurance market in the country will be pivotal. Insurance Brokers will provide a vital link between the client and the market, not just helping to place business, but also educating and working alongside risk managers and other insurance buyers helping them to understand the breadth of insurance protection available and advising them on the latest development in risk management and best practice corporate governance.”

He noted further that brokers from both local and international companies need to be prepared to invest in training local talents as without this it will be hard for the insurance industry to keep pace with the developing countries.

“Locally-based brokers can provide insight and advice to international investors in line with the transformation agenda of the Federal Government, and in turn as the economies of our country start to strengthen so will the need for Insurance.”

This, of course, is where a strong local brokerage community comes in to its own, as it steps up to provide advice on the particular requirements of each local market.

Brokers need to work closely with clients to highlights the importance and necessity of honest and open financial disclosure in order to allow the appropriate information to be released in order to assess the level of coverage required and in turn to give underwriters a full understanding of the business and its risk mitigating needs.

Modestus  Anaesoronye