Logo of National Insurance Commission (NAICOM)
As the insurance industry enters a new business year, stakeholders have listed some of the institutions that will play critical roles in the sector this year and beyond.
The insurance industry, like every other subsector of the economy, is into another new business year with lots of expectations and challenges. Some of these challenges, if not carefully handled are capable of plunging operators, the industry and the entire economy into deep crisis that is capable of impoverishing the industry and its stakeholders.
Against this backdrop, industry operators, regulators and investors within and outside Nigeria in a new business year like this usually put on their thinking caps to come up with policy decisions that will in the long run land the entire industry on a safe ground of profitability and best practices. This in turn, will position the industry as a globally competitive market with best returns to investors while operators trail path of profitability.
Apparently, by this time in 2013, the insurance industry regulator, the National Insurance Commission (NAICOM) in realisation of this, made a bold step that reshaped the face of the industry through the implementation of the "No Premium No Cover policy". This was followed up by the operators, a situation, which today has solved the lingering problem of huge outstanding premium in the industry and positions the it as a pacesetter for other regional markets.
For instance, the success of the No Premium No Cover policy implementation in Nigeria spurred the National Insurance Commission of Ghana into action in that effect from January last year, the commission decided to commence the implementation of its own No Premium No Cover.
In 2014, the commission in collaboration with the industry operators and stake holders consolidated on this and vigorously pursued the propagation of micro insurance in Nigeria. Licenses were issued while operators went into franchising for marketing of micro insurance.
These efforts according to the commissioner for insurance are aspect of the market Development and Restructuring Initiative (MDRI), which it kicked off in 2009.
Expectations in 2015
As we enter the first month of the year 2015, industry watchers are looking forward to seeing what shape the industry will take this year while both the regulator and various arms of the industry are busy brainstorming on to break new grounds in their efforts to move the industry to higher level.
Recent visit by THISDAY to the corporate head office of the Nigerian Corporation of Registered Insurance Brokers confirmed this as both the management and staff have taken a walk to quite zone of Lagos to brainstorm on how to contribute their quota in this regard.
To this effect,those who will shape the face of the industry this year include:
National Insurance Commission (NAICOM)
The objective of setting up the Commission was to ensure effective administration, supervision, regulation and control of insurance business in Nigeria.
The commission has the duty to establish standards for the conduct of insurance business this year in order to improve on the existing standard and ensure that operators conduct their business better than they did last year.
NAICOM is to determine whether there is need to increase insurance rates this year and should as such approve rates of insurance premiums to be paid in respect of all classes of insurance business.
It has to approve rates of commissions to be paid in respect of all classes of insurance business and ensures adequate protection of strategic government assets and other properties, regulates transactions between insurers and reinsurers in Nigeria and those outside Nigeria. It acts as adviser to the federal government on all insurance related matters; especially in the face of prevailing poor attitude of government towards insurance of its assets.
Giving its numerous tasks, the commission has to work hard in this regard considering the fact that the Nigeria Insurers Association (NIA) last year lamented that failure by government to insure its assets is the main reason compulsory insurances could not be successfully enforced.
Also NIA Chairman, Mr Gaius Wiggle recently expressed concern that insurance industry is suffering abuses from government.
NAICOM should through its advisory role to government address this problem.
The Chartered Insurance Institute of Nigeria (CIIN), has no doubt made good its promise to deliver mass education on insurance to Nigerians. The institute has in the past two years intensified efforts in this regard using the youths in secondary schools in Nigeria as point of contact. NAICOM should contribute to the educational programmes of the Institute.
The commission should increase effort in its image laundry exercise for the industry by ensuring more effective use of its bureau of public complaints, against any insurer, reinsurer, insurance broker or loss adjuster whose name may be submitted by members of the public.
Nigeria Insurers Association (NIA)
The NIA, which is the umbrella body of insurance underwriters
in the country was established in 1971 to promote and uphold the universally accepted standards of business ethics and professional integrity among its members, using modern technology in maintaining and disseminating information globally. There has been crusade over the years by public speakers against unethical practices among insurance underwriters. The NIA as the umbrella body should tighten its belt in disowning or delisting operators who indulge in any form of unethical practices. It should also caution its members who still drag the image of the industry into the mud through repudiation of genuine claims.
The association also has the duty to protect and advance the common interests of insurers in Nigeria by creating and sustaining a positive image for the insurance industry and contributing to legislation, and decisions made by the government and other public authorities in the best interest of the industry in particular and the national economy in general. NIA whose members constitute core industry operators should contribute its quota towards education of Nigerians on claims filing, claims settlements and policy interpretations and understanding to avoid unnecessary allegations on claims and fraudulent claims, which which will portray industry in bad light.
The Nigeria Council of Registered Insurance Brokers (NCRIB)
The Council is the Umbrella Association of all Registered Insurance Brokers in Nigeria who are by law expected to be registered by it before they can be licensed to operate in the Nigerian Insurance market by the National Insurance Commission.
The council has as its objectives the duty to establish and maintain a central organisation for Insurance Brokers and generally do all such things as may, from time to time elevate their status and safeguard and advance their interest and procure their general efficiency and proper professional conduct, with a view to ensuring for the community, the existence of a class of Insurance Brokers who can be relied upon as being trustworthy and duly qualified to perform their responsible duties.
It is to watch over legislation affecting Insurance Brokers, and to promote, or support and assist in any legitimate manner, the carrying into effect of any legislation having for its object the common interest of members, of the Council and the general public.
It also has the duty to collaborate as appropriate with government and with various institutions and professional bodies in achieving the objectives of the council.
The council as professional arm of the industry has the duty of marketing insurance to the public through its members interpreting insurance policy documents to the public and ensuring that the client gets his or her claims on time.
The council, through its president, Mr Ayodapo Shoderu, said it has targeted the distribution and extension of insurance services to the remotest part of the country.
The council and its members are expected to champion the cause of retail and grassroots insurance in Nigeria in the New Year riding on the numerical strength of its members especially this 2015 when federal government said it has targeted to provide insurance cover to over 10,000 farmers in the country.The NCRIB should pursue this course and ensure that government lives up to this promise.
Institute of Loss Adjusters of Nigeria (ILAN)
The objectives of establishing the institute was to establish and sustain a professional body of practising loss adjusters of Nigeria.
It has the responsibility of engaging in activities that will ensure the general welfare and public well-being of insurance loss adjusters and to take necessary actions for the advancement of education in the field of loss adjusting in Nigeria. The objectives should be pursued by the
institute by establishing and maintaining institutions, libraries, schools, and recreation centres for the succour, assistance or education of its members, and the public in Nigeria in loss adjusting.
By applying the Funds of the institute in the purchase of proprietary or other interests and the establishment of projects, the proceeds of which shall be appropriated wholly and entirely for charitable purposes and public well-being of loss adjusters in Nigeria.
The institute should this year establish a more cordial relationship with the insurers and the regulator especially in respect of the controversy in their commissions and scale.
The Chartered Insurance Institute of Nigeria (CIIN)
The Chartered Insurance Institute of Nigeria as the educational arm of the industry should in line with the promise of its immediate past president, Mr A A Lawal, play key roles in insurance education of Nigerian masses. It should realise the fact that part of the problem of the industry is ignorance of what insurance is and what it can do. It should therefore spend quality time in educating the masses in addition to what it is already doing. It should extend this to both public and private schools in the country and encourage insurance departments of various institution of higher learning.
Association of Registered Insurance Agents (ARIEN)
The members have the responsibility of promoting and selling grassroots insurance resting on their shoulders. They have numerous members scattered all over the country and are closer to the masses more than the brokers and the underwriters, they should therefore use this opportunity to market insurance to Nigerian masses and in doing that protect the image of the industry by not presenting themselves in bad light.They should key into the on going mobile telephone insurance embarked upon by insurance firms and spread insurance to all Nigerians. They should establish branches in rural areas to pursue the Federal Government 10 million farmers insurance scheme by marketing micro insurance scheme to farmers in rural areas.
Risk Surveyors Association of Nigeria (RISAN)
The RISAN is an association of corporate bodies and individuals performing the duties of risk surveyors in the fields of risk management, risk surveying, loss prevention, risk controls, etc in relation to fire technology, safety devices, engineering, business information and other risk of both industrial, commercial and personal lines.
RISAN provides continuous education for its members and inculcate in them the virtues of maintaining good business relationship with clients when giving professional advice on risks.
One of the areas insurers are not getting things right in Nigeria is in the area of educating Nigerians on how to stay safe and avoid risks. The result of this is that insurance industry is prone to claims emanating from avoidable risks.
The risk surveyors should during the year make their position and services more prominent and accessible than the previous years. Many don’t understand their position and place in the insurance industry they should therefore tell people where they are and what they can do to help in reducing the burden of claims from avoidable risks coming the way of insurers.
No comments:
Post a Comment