Chuks Udo Okonta
The Wale Onaolapo led Rating
Committee set-up by the Nigerian Insurers Association (NIA) is scrabbling for
data to enable the industry determine the minimum rates for different classes
of insurance, Inspen has learnt.
Director General, NIA Sunday
Thomas, said the committee has collected some data, adding that effort is being
made to add more to enable them have sizeable number that can give a reliable
figure in terms of rating of different classes.
He said: “I am aware that they have been able to collect some data, and
they are trying to add more, so that they can have sizeable data that can give
a reliable figure in terms of rating of different classes.”
He said aside determining the minimum rates for all classes of insurance,
the committee is also charged with the responsibility of recommending sanctions
for non compliance with the rates.
The challenge of rate cutting has been the bane of the industry, as past
administrations could not tame the monster.
Former Chairman, NIA, Olusola
Ladipo-Ajayi, once said the menace of rate cutting is one of the dark spots in his
tenure.
“I did not succeed in that
regard. That is the simple truth. It is
a pity” he said.
He noted that the industry
is its own worst enemy, because operators have allowed competition to driven
down prices, adding that with the continuous fall of rates, businesses are now unprofitable.
“We are running ourselves
below profitable level due to pressure in the competitive market that is why we
cannot grow beyond what we are doing at present,” he added.
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