Insurance industry fundamentals today are sound, favourable – Babington-Ashaye

Funmi Babington-Ashaye, the 48th President and Chairman of Council of the Chartered Insurance Institute of Nigeria(CIIN) has assured players in the Nigerian capital market that the nation’s insurance industry has the potential to deliver value to the investment community.

Babington-Ashaye who made the remark during the official visit of the Council of the CIIN to the Nigerian Stock Exchange (NSE), and performance of the closing gong ceremony on the floor of the Exchange in Lagos said the industry fundamentals today are sound and favourable.

The visit, which is part of activities to mark completion of her tenure as the president of the CIIN, offered her the opportunity to appreciate capital market operators for their immense contributions towards the recapitalization exercise of the insurance industry between 2005 and 2007.

“With the recapitalization exercise, the solvency and capacity of insurance companies to underwrite large risks and meet obligations arising from claims, have improved tremendously. More importantly, more foreign insurance companies have been attracted to the Nigerian insurance space due to the resultant improvement in regulations and business environment.”

Babington-Ashaye further stated that as the economy consolidates on its growth trajectory, insurance industry will hopefully enjoy an unprecedented boom due to the various initiatives of the regulator, the National Insurance Commission (NAICOM) which includes release of guideline on micro-insurance to deepen insurance penetration and to achieve financial inclusion target for the sector, implementation of compulsory insurance and adoption of new risk-based regulatory regime.

She however commended the sterling qualities and discipline leadership which the management of the NSE has brought to bear on the governance and activities of the capital market in Nigeria, stating that existing and potential investors are rest assured that their investments are in safe hands.

While also urging all listed entities to faithfully comply with market regulations and reporting practices, in the best interest of all stakeholders.

Oscar Onyema, chief executive officer of the NSE who received the CIIN delegation said insurance industry occupy an importation position in the Nigerian Stock Exchange, stating that the healthier they are, the more sustainable the market and the economy at large will be.

Onyema who was represented by Bola Adeeko, head, Corporate Services Division, NSE called for synergy and partnership between the insurance companies and the NSE, pointing that there are market initiatives, capacity building and human resource development programmes that will enhance their performance and increase market confidence on their stocks.