Ebola outbreak will further drag down insurance sector contribution to GDP-Shoderu

From Ngozi Onyeakusi, Lagos

As the dreaded Ebola Virus Disease (EVD) continue to threaten the lives and economies of West African countries, the President of the Nigeria Council of Registered Insurance Brokers (NCRIB), Mr Ayodapo Shoderu has stated that the outcome of the development will led to further drop in the insurance sectors contribution to Gross Domestic Product (GDP).

According to him, insurance sector will be negatively affected going by the possible rise in claims payment for life insurance which may emanate from the outbreak of the disease . “ Permit me to note that the scourge will also have adverse effect on the insurance industry going by the possible increase in compensation for life insurance.

Shoderu opined that it is a common knowledge that some countries are now restricting movement across countries adding that through such restrictions tourism and allied sectors have started to witness some lull in their operations.

Speaking while delivering a speech at the August 2014 edition of NCRIB member evening held in Lagos, Shoderu urged corporate bodies to join hands with the government to fight the dreaded disease.

“ It is quite apposite for me to advice corporate bodies to collaborate with government in bringing an end to this monstrous disease.

He stated that apart from creating unfriendly environment for productivity, the economies of nations most affected have been strained as substantial budgets made for other social and economic urpose are being diverted to curb the disease, already some critical sectors of West African countries of which Nigeria is cardinal are being affected adversely, he lamented.

“ Permit me to note with utmost concern the outbreak of the Ebola which has continued to be a scary episode in the world, in view of its devastating effect on the human race as well as the e economic implication of its spread .

Also speaking at the event, the Managing Director Union Assurance Mr. Godwin Odah disclosed that Union Assurance has earmarked key strategic  initiatives for 2014 to 2018, which include the unveiling of a micro-insurance model that will enable the company leverage affinity groups thereby achieving a lower acquisition cost for this important segment.

According to him it will participate in large transactions, particularly in the energy and power sectors, adding that they will partner with the big lenders such as First Bank, Union Bank, Stanbic IBTC Bank, Standard Chartered Bank.

On growing its customer based, the Union Assurance boss said that they will improve brand visibility and awareness among the young upwardly mobile middle class, adding that service and product innovation will enable the company deliver (particularly with the emerging middle class) a competitive value proposition.