2018 budget to lift insurance -Orimolade

Law Union & Rock Insurance Plc, Managing Director, Mr Jide Orimolade, has expressed confidence that the N8.612 trillion national budget would support Insurance Industry growth.

Orimolade, disclosed recently in Lagos that the budget for 2018, if cautiously executed would enhance growth of Nigeria’s insurance industry.

“With improved revenue, decrease in domestic borrowing (as the government has planned to reduce their borrowing share to 60 percent domestic and 40 percent foreign), with signal of decrease on interest on Treasury bill, there would definitely be an improvement in economic bubbling. Customer purchasing power is expected to increase” he had said.

The MD added that the budget proposal of N8.612 trillion, which shows an improvement on capital expenditure of 30.8 per cent of the budget, and rising oil price of above $60 per barrel, while budget proposal benched mark it as $45, reflects the sturdiness of the budget.

He said,“All things being equal, the insurance is expected to have a better share, better penetration and improve gross premium written in coming year.”
The management of Law Union and Rock Plc, on Monday, said its targeting to grow its gross premium written in 2018 by 35 per cent.

In achieving this, he said the company plans to re-position itself in the engineering sector; and tap into the opportunities provided in the 2018 budget.

He said that the 30.8 per cent share of capital expenditure signal that a lot of activities, which would required insurance service better than 2017 should be expected.
Speaking further on retail business, he said, “In 2018, we are going to be committed to effective distribution of most of our retail products. Most of them have already been deployed on our e-platform to make it easily available to the customers.”
On awareness creation, Orimolade s said the company would be looking at how to improve its image, brand visibility in the market.

Stories by Bonny Amadi