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 guidance is being given in response to the significant losses incurred by SMEs as a result of the civil disturbance that was seen in numerous regions of the nation.
They claimed that the recent crisis, which was brought on by the protest, as well as other current factors like the exchange rate, interest rate, and unemployment, “while some are geopolitical, technological, which most times could put their businesses on halt temporarily and in some cases permanently,” had a significant impact on SMEs.
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 that we have been in business, we have never failed to meet the regulatory metric requirements of 20% and 10%, respectively. This demonstrates how steady our bank has been, she continued.
“We have switched from the primarily manual traditional banking style of operation to e-banking operation. Therefore, account opening and the loan application, approval, and payout processes are all accessible online through our e-channel, she continued.
The board has “undertaken a comprehensive study for the restructuring, repositioning and rebranding of the bank with a five-year strategic plan in place and the implementation,” according to Okoli, looking to the future.