LASG Urges Insurers To Design Special, Affordable Policies For MSMEs

By LOVETH AZODO, Lagos

The Lagos State Government has tasked Insurance Operators to create special products for Macro, Small, Medium, Enterprises (MSMEs) that is affordable and free from technicalities for easy assimilation with assurance of settlement of claims.

Speaking at the Sensitization Workshop for MSMEs organized by National Insurance Commission (NAICOM) Today in Lagos, the Governor of Lagos state, Babajide Sanwo-Olu who was represent by the Commissioner for Finance, Lagos state, Mr. Rabiu Olowo acknowledge that MSMEs account nearly 50percent of the nation’s GDP and contributes 80percent of the nation’s employment.

According to him, the state government can not afford to ignore the challenges confronting MSMEs and threatening their survival. “That is why we describe our MSMEs as very resilient, if you can do business in Nigeria and thrive, there is no where you can not thrive” he said.

“We have launched so many initiatives and strategies and are still implemented towards providing an enabling environment for MSMEs to not only thrive but to succeed.”

“As laudable as these initiatives the sustainability of the anticipated gains can not be fully guaranteed without a safety net against unforseen circumstances”

As a guaranteed approach to protect small businesses against unforseen losses and circumstances that may threaten their operations, the Governor stated that securing insurance cover must be encouraged.

However, he advised insurance companies to ensure that insurance policies designed for MSMEs must meet their needs and also address the peculiarities of MSMEs.

“There should be specially designed products that will meet their category, income, operations and processes such must be affordable and free of technicalities so that it can be easily understood with assurance of settlement of claims,” he said.

” I enjoin all MSMEs in Lagos State to embrace insurance as safety net against losses that might be suffered as a result of unforseen circumstances,” he urged.

Also speaking, the Commissioner for Insurance, Mr O.S Thomas assured that the regulatory body, NAICOM is committed to its mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs.

“I dare say that the MSMEs sector is too important to be neglected as it is key to economic development of the nation and thus, must be guided and protected against failure. The encouraging responses validate that the products meet a critical need also that the appetite for players in the MSMEs sector to succeed sustainably is high,” he said.

On the Impact of securing MSMEs, the President of Chartered Insurance Institute of Nigeria, Mr Muftau Oyegunle said that the MSMEs are fundamental at core areas of its operation that is needs to expand.

” We are all open and willing to learn from each other,” he said.

In her goodwill message, The Director General Nigeria Insurers Association (NIA), Mrs Yetunde Ilori said that the era of ‘God Forbid’, ‘It will not happen to me’ has gone adding that one of the main reason for the workshop is to ensure that entrepreneurs have peace of mind.

“The operators are here to develop products that meet your needs, the regulators are also enacting laws to ensure all parties are considered and we are happy that Lagos state is supporting us on this”, she said.