Nigeria’s Minister of Finance, Dr. Zainab Ahmed, has urged insurance stakeholders in West Africa to update their operations in order to take advantage of the African Continental Free Trade Agreement and expedite intra-African trade.
According to Nairametrics, the Minister made this announcement on Monday during the “Repositioning Insurance Industry in West Africa for Global Competitiveness” 2023 Educational Conference of the West African Insurance Companies Association in Lagos for its 50th anniversary.
The Minister who was represented by the Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission, Mr. Sunday Thomas, insurers must reposition the sector for international competitiveness.
The Minister noted that insurance in all of Africa has been characterized by low penetration and poor contribution to most African countries’ financial growth.
The insurance sector is evolving in reaction to a variety of global social and economic influences, just like other segments of the financial system.
The Minister mentioned the need for a high-quality insurance database to provide a comprehensive view of the industry’s operations in the sub-region and how insurers might leverage the African Continental Free Trade Area to speed up intra-African trade.
In order to increase market penetration, she urged the use of technology and other alternative distribution channels, citing the need for improved multilateral cooperation with the aim of promoting international standards, fostering favorable investment environments, and fostering orderly markets in the West African sub-region.
“in order to keep up with these advances, it has become essential for the Insurance supervisory systems and processes to be continuously upgraded.
“This is to reduce any potential financial and systemic stability worries that may come from the insurance sector.
“I wish you a fruitful deliberation and congratulate all of the WAICA delegates on the association’s golden jubilee,” she said.
