The Independent Shareholders Association of Nigeria has called on governments, particularly state and local governments, to revise their current insurance procurement practices.

The association’s founder, Sunday Nwosu, made the call on Tuesday in Lagos, citing the government’s preference for third-party insurance.

Mr Nwosu said that the governments’ current preference could hinder industry growth and discourage potential investors.

According to him, governments hold the key to unlocking the insurance industry’s potential.

He maintained that governments could achieve this by fostering a thriving insurance sector that contributes significantly to Nigeria’s economic growth.

The ISAN chief explained that governments needed to set a positive example.

“Governments must recognise their roles in shaping the insurance sector. We strongly advise that they adopt comprehensive insurance policies as a standard practice.

“This will not only boost the industry’s financial health but also signal a commitment to best practices, encouraging private sector participation,” he said.

Mr Nwosu further said that governments could engage in public awareness campaigns to rebuild trust in the insurance market.

Mr Nwosu said, “Given the industry’s improved claims payment record, governments should actively promote insurance as a viable investment. Increased publicity will dispel lingering investor scepticism and attract much-needed capital.”

In light of PenCom’s pension payment directives, the ISAN leader called on governments to ensure future policies were designed to support both claimants and the financial stability of insurance companies.

“We urge governments to adopt a holistic approach to policy development, ensuring sustainable growth and robust protection for all stakeholders,” Mr Nwosu noted. 

(NAN)