How Insurance Drives Innovation in Nigeria

Innovation, they say, is a function of creativity. We all know, however, that for the SME, there is very little margin for error even in innovation. While the average SME is more concerned about raising capital to scale and ensuring the sustenance of their businesses, it is important to note that protecting the assets of the business is much more critical to sustainability.  

This is where insurance comes in. The insurance industry in Nigerian has an opportunity to drive innovation by providing risk-reduction solutions to small and medium-sized businesses (SMEs). While many SMEs need help in obtaining financing because financial institutions are reluctant to provide loans without adequate collateral, there are a couple of insurance products that protect financial institutions from default. But for the other emerging risks associated with running an SME, a few other insurance products risk may provide the security required. From Fidelity Guarantee which can protect your business from dubious staff to Group Life cover to ensure the best of your staff (if you have more than 3-5 employees) to Fire and Special Perils cover, to mention a few, insurance is well poised to be the main driver of innovative ideas in the SME space.  

Also, insurance products can help in reducing the dangers of new technologies such as cyber threats and self-driving cars. Insurance companies encourage innovation in these areas by providing coverage against these risks. By allowing entrepreneurs take risks and create game-changing innovations, we will not only create a system that pushes the country forward but also assures better returns for the SME. 

Call 0700SANLAMGI or send a mail to general@sanlam.com.ng