Expert identifies micro insurance products for MSMEs

An Insurance Undertaker in Benin, Mr Tella Adekunle, has identified shop owners insurance and micro credit insurance as products to help secure Micro Small and Medium Enterprises (MSMEs) in the country.

Adekunle made the disclosure in an interview with journalists in Benin on Wednesday.

He said that the need for MSMEs operators to insure their businesses was necessary going by their susceptibility to poor financial management and disasters.

“MSMEs create nearly 85 per cent of the total jobs and account for a little below 50 per cent of the country’s Gross Domestic Product.

“Micro insurance, though a developing concept in the Nigerian insurance space, is definitely the way to go so as to providing the requisite support for the huge investments in the informal sector.

“An array of insurance products have been developed and are provided by the licensed conventional industry players.”

He said that shop owners insurance typically insured against risks of fire burglary and some selected perils.

“There is also micro credit insurance which provides some sort of security to finance providers for MSMEs.

“There could be some unfortunate events thereby jeopardizing the credit advanced to the small business owner.

“For instance, death of a debtor or their bankruptcy, with this guarantor policy, the fear of the financiers can be allayed thereby providing capital required for MSMEs to flourish,” he said.

He added that MSMEs operators could also get life insurance packages by taking up long term corporate saving plans to secure their investment.