Insurance and reinsurance companies in the country under the aegis of the Nigerian Insurers Association (NIA) have appealed to the federal government to extend to them a bail-out fund as was done in the recent interventions in the different arms of the finance industry.
They reasoned that it would amount to injustice and insensitivity on the part of government to bail out intermediaries in the market, including stock brokers and banks, who lost very little or no resources to the crash in capital market, and leave out insurers who suffered huge losses in their capacity as corporate investors and risk bearers.
Government had set aside a huge sum of money to mitigate the impact of losses suffered by operators in the country’s finance industry, following the crash of the capital market and global financial meltdown some years ago and as at today only banks and stock broking firms have benefited from it..
“Many institutions and enterprises all over the world benefited from bailout plans by their government after the economic crisis and financial meltdown of 2008. In Nigeria, the banking industry, aviation and manufacturing industries benefited from the bailout by the Federal Government.
“Many insurance companies are still groaning from the losses suffered as a result of the crash in the stock market. Recovery has been difficult and returning to profit a herculean task.
It will be recalled that in the United States of America, the first country to bail out its finance operators, an insurance conglomerate, American Insurance Group (AIG) was the first and highest beneficiary of the country’s bail-out fund.