Thursday 29 August 2013

NAICOM charges operators to deepen insurance penetration

by Chukwuma Okparaocha

The National Insurance Commission (NAICOM) has urged operators as well as other stakeholders in the industry to work on deepening insurance penetration in West Africa.

This is coming amid worries by the Commission on how poor insurance industry is rated in Africa despite its potential.

Reacting to a recent report that placed insurance industry far behind the banking industry and capital market, when placed among financial service providers in West Africa, the commission urged underwriters in the sub-region to step up efforts on cross border integration that would enhance exchange of information and data necessary to deepen market penetration.

The commission, however, vowed to ensure that insurance firms engendered trust and acceptance in the sub-region through enforcement of rules and regulations.

The Commissioner for Insurance and Boss, NAICOM, Fola Daniel, who disclosed this, noted that insurance sector must step up its efforts as the industry regulators were poised to achieve this as quickly as possible.

"The insurance sector has remained a third-level player in the financial services sector of West African states. While the other components of the financial services sector in the sub-region have all moved on and firmed up processes for their integration, it is regrettable that same cannot be said about the insurance sector," he said.

Source: Tribune

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