Experts on need for insurance in challenging business environment

Cynthia Ezekwe

As businesses continue to face a range of challenges, from natural disasters to supply chain disruptions, it is crucial for them to have a safety net in place to help them navigate these turbulent times, according to analysts familiar with the insurance industry. Insurance, they noted, can act as a valuable safety net, providing financial protection in the event of unexpected losses or damages.

While many businesses may view insurance as an expense, it is in fact an investment that can pay dividends in times of crisis. They argue that by providing a cushion against unexpected events, insurance can help businesses to avoid bankruptcy or other catastrophic consequences.

During a recent webinar hosted by Coronation Insurance Plc, industry experts discussed the importance of insurance in helping businesses to succeed in challenging environments. The webinar, titled, “Insurance: A Key Partner for Business Success in a Challenging Environment,” featured discussions about how businesses can leverage insurance to mitigate risk and stay afloat during tough times.

The experts emphasised the need for businesses to have comprehensive insurance coverage, tailored to their specific needs and risks. They also stressed the importance of working with an experienced and knowledgeable insurance broker who can provide expert advice and guidance.

They highlighted several benefits of having insurance coverage, including the peace of mind that comes with knowing that businesses are protected against potential disasters. They noted that in addition to providing financial protection, insurance can also offer legal protection, helping businesses to avoid costly lawsuits. Thus, by providing a sense of security, insurance can enable businesses to focus on their core activities and be more productive.

Another key benefit of insurance being highlighted is that it can help businesses to attract and retain customers. In today’s competitive marketplace, customers often choose to do business with companies that have insurance in place, as it shows that the company is responsible and trustworthy.

The experts noted that societies with higher levels of insurance penetration tend to be better equipped to manage risks and disasters, as the presence of insurance can help to spread the financial burden across a larger group of people. This allows for faster recovery and a more resilient economy. Additionally, they pointed out that countries with higher levels of insurance penetration are typically more resilient to global crises, such as the COVID-19 pandemic or economic downturns, as businesses and individuals are more likely to have coverage.

During his keynote address, Henry Mascot, the CEO of Curacel, noted that the current period of uncertainty has created a need for insurance to help mitigate the risks that individuals and organisations face. In particular, he highlighted the importance of insurance in the digital age, where cyber risks and data security are of growing concern. He also spoke about the role of insurance in enabling innovation and growth, providing a safeguard for businesses to take on new opportunities.

Mascot pointed out that the COVID-19 pandemic, as well as the recent geopolitical conflicts and wars, have put many businesses in a vulnerable position, and insurance is a critical tool for mitigating the risks associated with these events. He further noted that insurance can help to prevent poverty, by helping individuals and organisations recover from losses, and return to their pre-disaster financial state. He added that insurance also plays a key role in enabling economic development, by providing a safety net for individuals and businesses to take on new ventures.

Mascot emphasised the importance of insuring key assets, such as machinery, inventory, and property, to ensure that businesses can continue to operate in the event of uncertainty or economic mishaps. He also highlighted the role of technology in enhancing the insurance market, by making it more accessible and efficient.

Tochi Ginigeme, the founder of Mesh Ventures, encouraged business owners to take a proactive approach to risk management, by identifying and analysing the risks that they face.

Ginigeme highlighted the importance of having a clear understanding of the types of insurance policies that can help to mitigate these risks. She noted that many businesses may not be aware of the full range of insurance products that are available to them, and urged them to seek out expert advice to ensure that they have the coverage they need. She further stressed the importance of being prepared for the unexpected, and encouraged businesses to have an emergency plan in place for when things go wrong.

Ginigeme urged insurance companies to embrace strategic partnerships that would enable them to utilise technology in boosting insurance penetration in Nigeria, while calling on insurance companies to invest directly in start up firms, which would help in providing insurance needs for the firms.

Anthony Olasele, the head of the corporate team at Coronation Insurance, highlighted the role of insurance in preventing businesses from suffering financial losses in the event of unforeseen circumstances. He emphasised the importance of having a business interruption policy in place, which can help to compensate business owners for lost income when their businesses are disrupted.

Olasele also highlighted the benefits of having other types of insurance, such as property insurance and liability insurance, to protect businesses from a range of potential risks. He urged start-ups to carefully assess their risks and seek expert advice on the appropriate insurance policies for their specific needs.

Olasele emphasised the importance of communication between insurance companies and the public. He noted that by building close relationships with the people they serve, insurance companies can gain a better understanding of their insurance needs and develop personalised products to meet those needs. He stressed that effective communication can help to increase trust and confidence in insurance companies, as well as promote greater uptake of insurance products.

According to Olasele, insurance is an essential part of doing business in today’s world and insurance can provide much-needed protection despite  the size or type of business, against the unexpected. He therefore urged business owners to invest in insurance,  stating that investing in insurance is an investment in the future of their company, and a decision that can pay off in a big way.

Olamide Olajolo, the managing director of Coronation Insurance, noted that the event was designed to provide solutions to the challenges faced by individuals and businesses. He emphasised that insurance can act as a social safety net, providing financial protection in times of need.

Olajolo also described the event as an opportunity to educate people about the benefits of insurance and how to access it, as well as to demonstrate how technology can be used to improve the customer experience.