Insurance industry targets closing housing sector gap

If the nation’s insurance industry is properly developed with deeper market penetration, where it can generate huge sums of long-term funds for infrastructural development, the nation’s housing sector would be a major beneficiary.
Analysts say the insurance penetration, currently at less than one percent, is a huge gap that must be filled to enable the sector play its role as a mobiliser of long-term funds for infrastructural development.
It’s been said that about N25trn is needed to bridge the housing gap estimated at 18 million units and growing by two million yearly, according to a report by Consolidated Discount Limited tagged: “Retrogressive View on the Mortgage Refinance Company (MRC).”
This is why insurance sector must be encouraged by all stakeholders to assist the housing sector in mortgage financing and property development, the analysts have said.
This effort by the insurance industry was further reinforced when Mutual Benefits Assurance plc recently commissioned its first ever housing estate in Iponri Lagos.
The estate, known as Mutual Alpha Court, is made up of four bedroom apartments on two floors with an additional two bedroom apartment on the ground floor as service quarter or income generator if leased to a tenant. Overall, the estate has 18 blocks of 54 units and two blocks of two units and is easy accessible to main arterial axis roads to the Island and the state capital.
Speaking at the unveiling, Fola Daniel, commissioner for insurance, applauded the effort of the company in not only taking insurance to the grassroots but also making affordable housing possible in Nigeria.
The Commissioner, who was represented by Faruna Monday, the deputy director, National Insurance Commission (NAICOM), said that housing needs in Nigerians has been put at 17million, adding that insurance companies have a big role to play in making sure that insurance plays an enduring role in the lives of customers.
He assured that the Commission is in total support of Mutual Benefits’ efforts to impart positively in the lives of Nigerians through sale of micro insurance products and housing development.
The Commissioner, who was represented by Michael Akindele, senior special assistant to the Lagos State governor on housing, commended Mutual Benefits Assurance for the giant strips, adding that provision of affordable housing should not be left in the hands of government alone.
According to him, government alone cannot provide the 17million housing needs of Nigeria, so all hands must be on deck to ensure that affordable housing is provided to all Nigerians.
Akin Ogunbiyi, group managing director, Mutual Benefits Group, said that a flexible payment plan has been put in place by the company with a mortgage firm on 60 percent of sales prices.
He added that the company is poised to use insurance to bring enduring value to the relationship with its customers, adding that the company’s needs based selling model makes it compelling for the company to provide beneficially unique risk management solution.
According to him, the risk company’s involvement into housing development was to compliment governments’ initiatives at providing affordable homes to fellow Nigerians.