Small and medium-sized businesses (SMEs) are urged to adopt insurance policies by industry experts to reduce business risks and maintain sustainability.
In order to help Nigerian SMEs affordably cover the essentials of successfully running their businesses, the experts who came together at the recently concluded webinar co-hosted by Coronation Insurance Plc and Coronation Life Assurance are working with Access Bank, for instance, to develop Business Protection Bundles that include basic fire, flood, and limited liability cover as well as limited employee life insurance, which provides three years’ yearly income.
The recommendation follows the significant losses incurred by SMEs as a result of the civil upheaval that was seen in various areas.
They claimed that the recent crisis brought on by the protest as well as other current variables including the exchange rate, interest rate, and unemployment had had a significant impact on SMEs, saying “while some are geopolitical factors, technological factors, which most times could put their businesses on halt temporarily and in some cases permanently.”
They made hints that since SMEs are the main generators of the economy, they need to be the biggest purchasers of insurance policies because business is full of dangers.
The Managing Director of Coronation Insurance Plc, Olamide Olajolo, said during a virtual meeting titled “Importance of Insurance for SMEs: Insurance Requirement for a Growing Business” that the webinar “is part of the company’s thought leadership initiatives designed to provide relevant insights for both corporate and individual clients across various sectors of the economy.”
Olajolo argued that insurance is crucial for everyone, even SMEs, noting that the last three years have been characterized by uncertainty.
According to Mrs. Adenike Janet Olabiran, head of the audit, risk management, and compliance department, “for the past 30 years, our liquidity ratio and capital adequacy ratio have been much beyond the statutory standards. In fact, it has surpassed the minimum needs by a factor of more than 400.
“In the 30 years of our operation, we have never fallen short of this regulatory metric requirement of 20 percent and 10 percent respectively at any time. This demonstrates how steady our bank has been,” she continued.
“We have transformed from the traditional banking mode of operation which is mostly manual to e-banking operation. Hence there is online access to account opening and loan application process, approval, and disbursement through our e-channel, she added.
Going into the future, Okoli said the board has “undertaken comprehensive study for the transformation, repositioning and rebranding of the bank with a five-year strategic plan in place and the implementation.”