Insurance operators have said that the growth of insurance business in any nation largely depends on economic development calling on government to intensify efforts on infrastructural development to enhance citizens’ standard of living.

The President of the Chartered Insurance Institute of Nigeria (CIIN), Dr Wole Adetimehin, who noted this, explained that people would only patronise insurance products when their standard of living can accommodate it.

This corroborates the submission of the Commissioner for Insurance and boss, National Insurance Commission (NAICOM), Mr Fola Daniel who noted that Nigerians believed in cash and carry transactions contrary to the principle of insurance.

Mr Adetimehin who, since his assumption of office as the president of CIIN, has been championing the improvement and relevance of insurance industry, said that infrastructure development would enhance the growth of the economy.

According to him, infrastructural development would enhance establishment of more industries, reduce the rate of unemployment, and raise the citizens’ standard of living which would invariably impact on insurance business.

He added that with improvement in standard of living, people would have the  wherewithal to patronise insurance.

According to him, insurance practitioners would join forces with other stakeholders to get the government to build infrastructure that would propel the growth of the economy.

He said: “When the economy is growing, all other sectors will grow simultaneously. This probably accounts for the slow pace of growth in insurance. It is because the economy is not growing. It is the function of the growth in the economy that would determine what should be the living wage, how are people being paid, and what level of disposable income they have, from which they can buy insurance.

“So, we are joining stakeholders like Manufacturers Association Nigeria (MAN), financial services sector, real sector and others to impress on the government that it is high time something drastic is done in the development of infrastructure that would propel the growth of our economy.

“More importantly, I am an advocate of improved lifestyle for the working populace of this nation. Where people could be seen to be earning a living wage that would leave enough disposable income for them to buy insurance.

“When more people are employed, the demand for goods and services would increase. The belief is that Nigeria is one of the countries where people are poorly paid. Look at the extent we went on the minimum wage which translates to N600 a day. What can anyone do with that amount of money?”