Adegboyega Oyetola, Nigeria’s Minister of Marine and Blue Economy, has emphasized the urgent need for a robust insurance framework to mitigate risks in the country’s blue economy sector. Speaking at the 2024 National Insurance Brokers and Exhibition with the theme “Insurance and Blue Economy: Connecting the Knots,” Oyetola highlighted the role of insurance in fostering growth and sustainability within the maritime industry.
He noted that the blue economy, which includes activities such as shipping, aquaculture, offshore energy, and marine tourism, holds immense potential for driving economic growth and sustainable development. However, the sector faces significant risks, including climate change impacts, natural disasters, and regulatory challenges.
“Insurance plays a vital role in mitigating both traditional maritime risks such as hull and cargo damage, liability, and piracy, as well as emerging risks like sea-level rise, extreme weather events, and ocean acidification,” Oyetola said.
The minister stressed that a well-structured insurance framework would not only provide financial protection but also create a conducive environment for investments. This, he explained, would boost investor confidence, incentivize sustainable practices, and facilitate financing for ocean-based projects.
The Economic Value of Marine Insurance
Oyetola underscored the importance of marine insurance as a critical tool for global trade, providing financial protection against potential losses or liabilities in maritime operations. He noted that marine insurance covers ships, cargo, and other assets involved in trade across seas and inland waterways.
“Marine insurance ensures the smooth operation of global trade by mitigating potential losses and liabilities. It is indispensable for the shipping industry,” he explained.
The global marine insurance market reflects its growing significance. Oyetola revealed that as of 2023, the market was valued at $33.9 billion and is projected to reach $45.2 billion by 2032, growing annually at 3.2 percent. This growth, he said, is driven by increasing international trade, the rising frequency of natural disasters, and the need for comprehensive coverage amid geopolitical tensions.
Supporting Sustainable Development
In addition to financial protection, Oyetola pointed out that marine insurance fosters sustainable practices by offering lower premiums to businesses demonstrating strong environmental and social performance. He called on stakeholders to explore innovative insurance solutions to protect investments in offshore renewable energy, aquaculture, and other sustainable ocean-based projects.
As Nigeria seeks to harness its blue economy’s full potential, Oyetola’s call for a robust insurance framework underscores the critical role of risk management in unlocking sustainable growth and attracting international investment.
This report is based on remarks delivered by the Minister of Marine and Blue Economy, Adegboyega Oyetola, at the 2024 National Insurance Brokers and Exhibition.
