Shortage of qualified hands threatens insurance practice

Shortage of qualified hands threatens insurance practice Chuks Udo Okonta Crisis looms in the insurance industry due to depth of qualified and experience professionals The Nation has learnt. Investigation has revealed that 60 per cent of the industry’s workforce, which also are tested hands are aging and are about to retire. The Commission for Insurance Mr Fola Daniel, said there is a wide gap in the industry as the rate at which the aging practitioners are exiting the industry has not been matched by the rate of entrance by new qualified practitioners. He also expressed worry over the inadequate capital of the industry, which he considered a clog to the development of insurance practice. He said: “The industry has continued to suffer from inadequate capital and limited human capacity. In relation to human capacity, there is an observed shortage of qualified and experienced professionals. “This gap exists given that the rate at which the aging practitioners are exiting the industry has not been matched by the rate of entrance by new qualified practitioners. While it is hoped that this gap may be filled in few years given the current efforts by the Chartered Insurance Institute of Nigeria (CIIN) at training insurance professionals, the challenge relating to inadequate capital may continue for some time as the industry is not known for self induced recapitalisation.” He said the National Insurance Commission (NAICOM) is working assiduously to open the industry and create additional 250,000 new jobs to meet the human capacity need of the sector. Daniel said the commission hopes to midwife an industry of highly skill and motivated workforce; an industry committed to international best practices, an information and technology driven regulatory and market environment as well as effective supervision. He said industry will be improved through adoption of risk-based capital and supervision model; transparent public financial statements; timely market information and insurance market that is able to compete globally. Director General, Chartered Insurance Institute of Nigeria (CIIN) Mr Adegboyega Adepegba, said unless urgent measures are taking the industry may be heading for extinction as 60 per cent of its workforce is said to be near retirement age. He said the industry’s operation is threatened by human capacity gap, adding that most of the industry’s workforce is almost 60 years of age. He noted that to revise the trend operators must begin to recruit young and intelligent personnel. “The statistics available to us show that in few years from now, the industry work-force will consist of people that are 60 years and above age bracket, and this is not good for the industry. If about 60 per cent of the industry’s workforce will be aging – going towards 60 years, therefore, there is a dare need to inject new people into the industry. I think every body has agreed on this. By the time we achieve all these, the issue of succession planning and running of the companies would be made easier,” he said. He said the institute is reaching out to youths through their schools and encouraging them to take professional insurance examinations to beef up the human capacity depth.