Insurers attribute low activity on delay of economic blueprint

The lack of economic blueprint otherwise called roadmap by the Mohammadu Buhari led government yet has been attributed to low activity in the business environment, including insurance sector.

These gap experts have said are one of the key factors affecting new investments, as investors both locally and internationally are waiting to know the direction of government before taking critical investment decisions.

Insurance thrives when there is activity in the economy particularly new investments, so like other sectors of the economy insurance is also having a low time, says Ken Aghoghovbia, deputy managing director/COO Africa Re.

“Foreign investors are still waiting to see what the roadmap will be to be able to know where to more money and where to withdraw money”

Aghoghovbia, however expressed optimism on the future of the economy, pointing out that people are happy that at least somebody of high integrity has come in government and that probably things would be done differently and done right”

On impact of the falling naira on reinsurance, Aghoghovbia,  said it will not have any serious effect on the value of reinsurance, stating that the market was stable.

This is not likely to affect the underwriters because the contract i believe is transacted in naira, so reinsurance will also be paid in Naira. Even though a foreign reinsurance will report his account in dollars it does not affect the underwriter or what the value of the business is, he said.

Paschael Egerue, managing director/CEO Enterprise Insurance Brokers said the fall in naira will not have any negative impact because the currency of transaction will have its investment backing.

“If the business were done on dollar denomination, there should be a dollar investment as back up, and the same goes with naira transaction”.

I do not foresee any challenge, unless there is a misalignment, Egeru observed.

Modestus  Anaesoronye