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From left: Commissioner for Insurance
Fola Daniel and Director Supervision, National Insurance
Commission (NAICOM) Nicholas Opara, at
an interactive session for business Editors, organised by NAICOM in Lagos.
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Chuks Udo Okonta
The Nigerian Content Act, has moved Insurance
companies capacity to underwrite local risks to 40 per cent, the Commissioner
for insurance Fola Daniel, has said.
He disclosed this today Monday in
Lagos, at an interactive session for Business Editors, organised by the
National Insurance Commission (NAICOM). He noted that prior to the enactment of
the law; the industry was underwriting about three per cent of local risks.
Daniel noted that the law has paved
the way for underwriters to engage in special risks, which were ceded abroad in
the past
He said insurers are presently doing
well in oil and gas risks, adding that tremendous growth has also been recorded
on aviation risks.
He said the industry operators are
also careful about the level of their involvement in high profile risks,
stressing that they only take a bite of what they can chow.
“The Nigerian insurance sector has
great potentials for massive growth. The population, if adequately harnessed, gives
an added advantage to the industry to further develop its market,” he said.
Daniel noted that the implementation
of the No Premium No Cover law, has significantly improved the cash flow of
insurance companies, while optimistic that the positive turn of events would
impact on the capacity of operators to settle claims promptly.
He said the commission is working
towards having a call centre that will enable the public report insurance
companies that failed to honour the terms of contracts entered with them.
“The Nigerian insurance industry has
witnessed tremendous changes in recent times, owing to the new reforms embarked
upon by NAICOM. These reforms include the introduction of risk based supervision,
migration to International Financial Reporting Standard (IFRS) from the
Nigerian Generally Accepted Accounting Principles (NGAAP), market conduct reforms,
claims settlement reforms, financial inclusion and more.
“All geared towards developing the
industry and improving the general perception about insurance,” he added.
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