Obinna Chima
Fitch Ratings, one of the global rating agencies, has identified the “low average earnings and widespread poverty” in Nigeria as some factors weighing on insurance affordability and the growth of the sector.
The rating agency stated this in its latest Nigeria Banking and Financial Services Report for the third quarter of 2020, which THISDAY obtained Thursday.
According to the agency, these factors have continued to limit the outlook for premium and even the more affluent middle-class consumers tend to avoid purchasing insurance, which also hampers the growth of compulsory basic insurance lines such as motor vehicle insurance.
“Nigeria’s potential consumer base needs to be educated more about the benefits of both life and non-life insurance coverage to support more robust growth in the sector,” the agency added.
It, however, predicted that with a market supported by the country’s steady economy and large population,…
Source: Thisday Newspaper
