Why Present Economic Climate Best Time to Buy Insurance – Faturoti
Faturoti Olaniyi Samuel, the executive chairman of
In
Under the economic climate we face in
We believe that it is going to get better but given the present situation, this is the best time. There is something we call "silent risks", where assets are just idle and have not been effectively engaged. For construction companies, when there are delays in payment or termination of jobs, you need these assets for you to be up and running and do other jobs. If the assets are not insured or adequately covered, what happens? If because of your expertise and skills, you have another organisation that wants to take on your firm, you have to insure because some of these assets are prone to damage, theft, floods, etc.
So, insurance is very important. What we have realised is that there is not enough awareness; people have not discovered the value of insurance. For some of us who travel very well, for instance, in the US you cannot take an asset of
Back to your question, this is the best time for the insurance sector. I was listening to a DG of an agricultural agency and he said this is the best time to insure the farms. Insurance involves dealing with unforeseen circumstances like your seeds and agricultural produce. These things are exposed to fire, floods, etc. and if the farms are not properly insured, so much could be destroyed. So, this is the best time for us to explore insurance.
Are there concerns about the security of insurance premiums or difficulty in getting claims?
No, the insurance sector has been fully recapitalised. You may buy an insurance policy of N2m or N5m for an accident, flood, third party, etc. and if you have an underwriter or insurer who is not able to pay, you don't need to talk too much, just go to the
I used to be a banker, and we had that issue before
So, what you are saying is that there is full confidence in the regulators of the sector?
What do you say to the cultural or religious beliefs that if one is divinely protected there may be no need to buy any form of insurance?
It still boils down to ignorance. There is a saying that if you say education is expensive then try ignorance.
What do you have to say about other factors that hamper claims like prolonged investigation?
It is a pool of resources so there is an investigative aspect. We have had a lot of false claims. People set their vehicles ablaze to get more money to buy a new one. People tell all manner of lies. As I said, it is part of global best practice that when your claims are made, there has to be an investigation, there must be a police report backed up with evidence and you will be indemnified and compensated.
This is the best time to insure all your assets so that you don't put all your eggs in one basket.
What do you think is the way out of the economic difficulty in the country today?
My preliminary thought about the way out of economic hardship include government's swift economic intervention, flexible change in economic policy, right legal economic framework, quick governmental intervention aimed at cushioning the effect of price stability in the market, effective governmental intervention on micro economy, reduction of the price of goods and services, tax waivers on the manufacturers in the society, improving insecurity, direct subsidy for goods and services, effective palliatives to all the citizens by giving stable foods to homes and effective direct grants disbursements to citizens.
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