LUR to Develop Microinsurance

March 09th, 2018

Law Union and Rock Insurance Plc, has setup a Microinsurance unit to provide policies to meet the needs of different segments of the society.

The Managing Director of the firm, Mrs. Toyin Ogunseye said that this was part of efforts to support the Market Development and Restructuring Initiative of the National Insurance Commission to drive insurance to the grass roots.

“We have already started our Microinsurance unit with its product and channel development initiatives,” she said.

The Law Union & Rock boss commended NAICOM’s efforts at developing the sector through MDRI. According to her, the measures introduced by the commission – creating more awareness and increasing government support for the industry – was increasing the appreciation of insurance in the country.

Ogunseye pointed out that Microinsurance has the potential to significantly improve the lives of the world’s poorest people and positively impact the development of the informal sector. She explained that it is one of the instruments that is been used to bring the poor into conventional financial systems and at the same time improve their wellbeing to give them a better standard of living.

The Managing Director further explained that Microinsurance can also be seen as an instrument to actualize the much needed financial inclusion of the population at the bottom of the pyramid. She said that this is because the conventional insurance does not by nature, cater for the poor or the low income earners in the society.

She said that the firm was interested in meeting the needs of the insuring public through the provision of innovative products which would be affordable to the retail market.

Ogunseye said that with Microinsurance, the policy holder would be encouraged to build a savings culture and create wealth for himself.

She also said that when the policy holder has insurance against an insured occurrence, he would not have to go through any hardship because his insurance company will pay him his claims when such need arises.