I’ll be careful, so why do I need insurance?
Here’s why…
In 2024, ensuring comprehensive insurance coverage is paramount. It not only safeguards you against unforeseen challenges but also fosters a resilient foundation, allowing you to navigate uncertainties with confidence while protecting your well-being. It provides a financial safety net, offering protection against unexpected events such as death, accidents or unforeseen liabilities.According to the Namibia Insurance Market Report Overview, the gross written premium of the Namibia insurance market was N$6.4 billion in 2021. The market is expected to achieve a Compound Annual Growth Rate (CAGR) of more than 8% during 2021-2026. Are you part of this statistic or not? If not, here are a few areas to take note of when considering insurance.
You need to make sure that you select a company that is fully committed to meeting your needs, which includes service offerings that understand that every Namibian is going through a difficult financial period under the current economic situation. Each Namibian should have the opportunity to pay for medical emergencies, have funeral insurance and/or protect your child’s future in terms of education through savings and investment-related insurance.
While we cannot avoid certainties like death, we can prepare for them to ensure that those left behind can mourn without added financial burdens. No one wants to think of this or even worry about, but it is important if not actioned already.
Planning
Insurance also helps with long-term and retirement planning, which in turn creates a society of Namibians that are financially secure as well as financially supported against all risks linked to life, health and property. The knowledge that one is protected by insurance encourages prudent decision-making. Whether it be investing in a home, starting a business, or pursuing ambitious projects, individuals and entities with insurance are more likely to take calculated risks, knowing that they have a safety net to fall back on. In 2024, all steps must be calculated incorporating any inevitable risk factors.
At a macroeconomic level, the prevalence of insurance contributes to overall economic stability. The key segments in the Namibia insurance market are life insurance and general insurance. The life insurance segment dominates the market. The growth rate of premiums was higher than the average for both emerging and developed markets. The uptick can be attributed to increased awareness about life insurance amid the Covid-19 pandemic. While our fears are somehow easing, we must remain vigilant and prepared for other unforeseen circumstances. When individuals and businesses are adequately insured, the burden of recovery from financial shocks is distributed across the insurance industry.
This distribution prevents the concentration of economic strain on specific sectors, mitigating the potential for widespread economic downturns.
Resilience
The true test of a society's resilience lies in its ability to navigate and recover from crises. Insurance plays a pivotal role here by providing the necessary financial resources for timely recovery efforts. Insurance facilitates a quicker and more effective response to crises, minimising the overall impact on communities.
In an evolving landscape, having insurance demonstrates responsible leadership, reassuring stakeholders and employees alike, as well as your personal life while contributing overall.
What more should one be on the lookout for when strategising for insurance in this new year?
Look for an offer that is designed to provide protection and peace of mind for you and your family when taking on significant loans, such as study loans, personal loans or hire purchase loans. It ensures that your loans are paid off in the event of your death, disability or should you contract a dread disease.
Your preferred company of insurance should take into account a step in promoting a more inclusive, connected Africa by nurturing socio-economic growth through insurance and networking. Such milestones are not only celebrated in isolation but have an overspill on our economy and allow us to keep our expertise, skills and money within our borders to further develop our continent.
In conclusion, the importance of having insurance extends far beyond the realm of risk management. It is a linchpin for financial stability, a catalyst for strategic business resilience, and a cornerstone for societal well-being. As we navigate the uncertainties of the 21st century, the role of insurance remains indispensable, offering a path towards a more secure, stable, and resilient future.
Make that right choice in 2024 now if you haven't done so already.
*Martin Shaanika is the Managing Director of Namforce.
** Opinion pieces and letters by the public do not necessarily reflect the opinion of the editorial team. The editors reserve the right to abridge original texts. All newspapers of Namibia Media Holdings adhere to the Code of Ethics for Namibian Media, a code established jointly with the Media Ombudsman.