FG Urges NAICOM to Deepen Insurance Penetration

Ndubuisi Francis

The federal government has advised the National Insurance Commission (NAICOM) to deepen insurance penetration in the country by encouraging players in the industry to evolve new insurance products and policies.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, who gave the directive in Abuja, while receiving the Governing Board of NAICOM on a courtesy visit, yesterday, said there was the need to achieve more insurance penetration in the country.

Underscoring the need to evolve new insurance products and policies, the minister urged members of the board to commit to developing and implementing policies that would promote the reputation of the industry through prompt payment of claims.

She said the target should be to take the industry to greater and enviable heights during your tenure.

The minister charged NAICOM to increase the industry’s contribution to the nation’s Gross Domestic Product (GDP).

Lamenting the current state of the insurance sector, Ahmed specifically charged the chairman of the board to deepen insurance penetration through new insurance policies for the sector.

She called on the board and the management of the commission to work harmoniously in order to actualise the mandate of the Commission.

She added: “It is of utmost importance for the new board and the management of the National Insurance Commission to work harmoniously together in order to actualise the mandate of the Commission.

“The Board has to develop strategies to systematically build the capacity of members through Workshops, Seminars, Study Tours, etc. to enable effective contribution towards the growth of the Industry, especially as some members were not drawn from the insurance sector.

“Members should note that there are guidelines, regulations and circulars that guide the operation and conduct of Governing Boards of Federal Government Parastatals, Agencies and Commissions and should be strictly adhered to Frequency of meetings; entitlements of Board members, Travel guidelines and related matters.

“Deepening Insurance penetration in the Country: There would be a need to achieve more insurance penetration in the country. In this regard, there is need to evolve new insurance products and policies.

“Members should commit to develop and implement policies that would promote the reputation of the Industry through prompt payment of claims. Your target should be to take the Industry to greater and enviable heights during your tenure,” she added.

In his remarks, the Chairman Governing Board of NAICOM, Dr. Abubakar Sani, disclosed that the Commission was set to put in place a task force to enforce compulsory Insurance across the country.

According to Sani: “We will need your support to exterminate the menace of lake insurance policies in the country, which deny huge revenue to the insurance entities and taxes to the government.

“In our action plan we will solicit the cooperation of your ministry to institute an insurance task force that would enforce compulsory insurance in the country. The task force that will be deployed, should be made of the Police, Vehicle Inspection Officers (VIO) and Nigerian Civil Defense.”

He stated that the commission would begin the recapitalisation of the insurance industry and ensure the restoration of its prominence.

He vowed to sanitise the insurance market by taking out companies that failed to measure up to expectations.

Sani added: “We shall enforce the professional code of ethics among the insurance entities. strengthen their corporate governance, which the board believes will sanitize the market.

“The NAICOM Board will revisit the matter of recapitalisation of the insurance industry and will clean up its act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies.

“The board is working to sanitise the market, and will be taking out companies that are not majoring up to expectations.

“And we will install the mechanism to review all the actuarial valuations submitted to the commission for assessment and consideration. In order to enhance the performance of the regulatory body, its strategic plan will be reviewed to align with the objectives of the commission as contained in the matching order and directives, where the Minister specifically asked the Board to uplift the insurance industry to a greater height, on the day our Board was inaugurated.

“The Board is seeking for your support to search for investors that would make Nigerian insurance industry robust to effectively strengthen the entities to play their roles in making other businesses thrive in the country.

“The NAICOM will organise an insurance investment forum in Nigeria and abroad with the sole aim of wooing potential investors to take advantage of the potentials in investing in Nigeria Insurance Industry.”

The Board, he added, would seek the collaboration of the Nigerian Investment Promotion Council, National Assembly committee on Diaspora, and other insurance jurisdictions across the globe.

He stressed: “We want to extend our investment campaign to Europe, the Middle East and America.

“Furthermore, we will need your support to exterminate the menace of lake insurance policies in the country, which deny huge revenue to the insurance entities and taxes to the government.”