Micro Insurance: LAPO CEO urges flexible processes for small businesses

Dr Godwin Ehigiamusoe, the Managing Director, Lift Above Poverty Organisation (LAPO) Group, has urged flexible and innovative processes in the provision of micro insurance to small businesses.

Ehigiamusoe, also the Chief Executive Officer of LAPO Microfinance Bank (LAPO MFB) made the call in an interview with the News Agency of Nigeria (NAN) in Benin Tuesday.

He said adoption of innovative and flexible processes by micro insurance companies would encourage small to key into insurance policies.

“The micro insurance company able to convince owners of micro and small businesses to insurance the low income earners generally do not give priority to insurance.

“They do not like insurance policies, they believe that insurance policies are for the rich and big businesses.

“They also hold this belief of ‘God forbid’. Once ask a low income person why can’t insure your sewing machine against theft? He will simply respond “God Forbid’.

“Low income earners and micro and small businesses actually need insurance more than any other type of persons and businesses they are the vulnerable to risk,” he noted.

He said that micro insurance were typical to those rendered by conventional insurance companies, noting difference was in process delivery.

According to the LAPO boss, the development for micro insurance involve small units of which rendered in innovative to meet the peculiar nature of micro and small businesses.

He added that micro finance banks that had been in existence for more than 12 years could provide its institutional structure for micro insurance to reach low income people.

“MFB can go into micro insurance due to the fact that they are targeting the same set of people and the same set of businesses.

“The micro insurance products are typical as those provided by conventional insurance companies; life insurance, health insurance and other policies that protect businesses against risks,’’ he added. (NAN)