Coronation Insurance, experts Educate SME Operators On Managing Risk

By LOVETH AZODO, Lagos

Coronation Insurance and other Insurance Experts have urged Small and Medium Enterprises owners on the need to leverage on insurance to manage risks in time of uncertainties.

Coronation Insurance Plc. in partnership with Access Bank Plc, engaged SME owners in a webinar with the Theme: ‘Managing Business Risks at a Time of Uncertainty.’

The Commissioner for Insurance, Sunday Thomas who was represented by the Technical Assistant to the Commissioner, Taiwo Adeoye said that the Commission encourages the Coronation Insurance and Access Bank Bancassurance initiative,  a collaboration geared toward deepening financial inclusion.

“The bancassurance partnership was developed to assist banks depositors to secure the businesses that generate their deposits,” he posited.

He urged SME owners to have a good risk management framework as well as be able to manage their insurances and assets.

“Many are left with the option of cutting cost, however not all cost-cutting will measure success and some might even end up hurting our businesses,” he said.

“As business owners and as businesses spring up, we must ensure that we put the right processes in place in trying to manage our assets and ensure that we have more strategic thinking”.

“Risk is part of our business endeavours and the best thing is to evaluate and see what part of the risk you can transfer. The insurance industry has proven its relevance in the affairs of the economy”, he said.

“At this point in time, it is good to reduce costs but in terms of insurance, we should ensure that all our assets are adequately insured. It’s also important to have a good management framework and be able to manage our insurance assets.”

Also, the Group Managing Director of Continental Reinsurance, Dr. Femi Oyetunji, during his presentation explained that risk is anything that brings uncertainty into the achievement of objective.

He identified top SMES business risks as, Keyman; Currency Risks; Regulatory; Property Damage; Business Interruption; Reputational Risk; Supply Chain; Cyber Risks and Fraud.

Also speaking, the Managing Partner, Crowns & Lyord, Mr. Omotayo Gbede who spoke on the theme: ‘Inflation in Nigeria and Possible Ways to Reduce Its Impacts on Your Business’ implored the SMEs operators, to use the Bank Assurance to boost their business success.

He identified some of the factors limiting the growth potential of SMEs as Limited availability of funding from financial institutional and the government, according to him, this undoubtedly slows down their growth trajectile and impedes the development of Nigeria as a truly world acclaimed economy.

Other limitations are high cost of credit facilities inclusive of interest rates and maintenance costs and the demand for duly registered collateral obligations; inconsistency in government policies and bureaucratic bottlenecks experienced in the administration of incentives and support facilities from all levels of government; multiple taxes as a result of levies and other tax expectations from both the State and Local Government Areas, lack of and/or limited infrastructures like power supply, good roads, transportation system; unavailability of local raw material; high cost of procuring machinery; import liberalization and export constraints.

He maintained that Nigeria’s annual inflation rate climbed for a 14th straight month to 14.23 per cent in October of 2020 from 13.71 percent in September, stating that it was the highest inflation rate since February of 2018, amid widespread increases in prices due to the adverse effects of ongoing border closures, Covid-19 crisis, violent farm attacks and recent dollar restrictions. Main upward pressure came from food prices (17.38 percent vs 16.66 percent in September).

“Additional upward pressure came mostly from health (13.08 per cent vs 12.58 per cent); transport (12.11 percent vs 11.65 percent); clothing & footwear (11.25 per cent vs 11.02 per cent); alcoholic beverages, tobacco & kola (10.79 per cent vs 10.59 per cent) and furnishings (10.67 per cent vs10.43 per cent).

“At monthly basis, consumer prices inched up 1.54 per cent, the most since June 2017, after increasing 1.48 per cent in the previous month. This has a lot of implications for SMEs,” he said.

During his address, Mr. Roosevelt Ogbona, Deputy Managing Director, Access Bank Plc revealed that the bank decided to partner with Coronation Ins urance, to evolve the Bank Assurance scheme for the purpose of fulfillment of its promise to their customers to be more than a bank.

We want our customers to experience the best of underwriting and claims experience. “I believe that this partnership makes that possible. Coronation is a natural partner for us. First, because of our history we have just shared, and more importantly, it meets all the criteria that we wanted in an insurance partner”.

First, the speed of response and the level of customers that Coronation Insurance brought to the table .Second, and more critically, its financial strength and capitalization of the company.

We believe that by coming together, “We would define and set new standard for quality service delivery within the insurance industry, he said.

In her optimism, Mrs. Yinka Adekoya, the Managing Director of Coronation Insurance Plc, said, “We hope the webinar has been impactful, and will help you in planning for 2021, and the uncertainty we all face.

“We are extremely excited at this transformational Bank Assurance partnership with the Access Bank, and we hope it will establish us at the point of reference in the insurance industry in Nigeria, and Africa.