Unhealthy competition, inadequate data upload stall NIID project

Unhealthy competition, inadequate data upload stall NIID project

Chuks Udo Okonta

The Nigerian Insurance Industry Database (NIID) could not commence due to cut-throat competition and inadequate data upload by underwriters, the former Chairman Nigerian Insurers Association (NIA) Olusola Ladipo-Ajayi, has said.

He told Inspen that the information uploaded so far by operators is inadequate to flag-off the initiative, adding that commencing with the available data would cause embarrassment to motorists who data have not been uploaded by their insurers.

He said unhealthy competition and ignorance have deterred most operators from sending their information to the industry database.

He said: “There is no need carrying gadgets all over the places, when the people you want to monitor are not ready. The level of information uploaded on our database is not enough. The NIA Director General has been conducting checks with the Database, and he has found that the number of vehicles on the database is nothing to write-home-about. So, if we give the gadgets to policemen, they would begin to harass motorists who even have genuine particulars.

“The fault is not from the NIA, but from the practitioners who have failed to recognise the wisdom of uploading their data to the database. I cannot explain why much ignorance runs in the system. I spent two years as the Chairman of the association explaining how to understand business issues to insurance companies, but the industry is blindfolded by stiff competition and cut-throat price war. We need some catastrophic events - market forces to send some parking and keep others.”

He noted that the NIA took six years to prepare for the initiative, adding that the implementation is clogged by fear and personal interest.

 According to a report by the Information Technology Committee of the NIA, over 550,000 motor policies had been uploaded by 42 firms, indicating that 18 firms are yet to unload their policy to the platform.

 “The NIID project went live on September 8, 2011. Member companies commenced motor insurance policies data upload immediately and over a total of 550,000 motor policies records had been uploaded by 42 members underwriting motor.

Selected members of the committee had been highly instrumental to the development, implementation and test running of the NIID system. Committee members had also been involved in training their companies’ branch officers, having undergone the initial train-the trainer briefing on the aims and objectives of the NIID.”

NIA said the benefits of the project include monitoring and authenticating insurance transactions documents, reducing incidences of fraudulent insurance transactions and policies most especially for motor and marine policies, reducing red tape and corruption by integrating with the vehicle registration system of the FRSC, the police and other relevant agencies and ensuring access to statistical data for effective decision making.

He stated that the project will also help develop capacity in NIA to monitor and authenticate underwriting transactions with the industry and facilitate information sharing on stolen vehicles through technology-driven collaboration between relevant agencies. 

Director-General NIA Sunday Thomas said the customised e-reader gadget to be used by security agents to verify vehicle policies will be distributed across the 36 states and the Federal Capital Territory (FCT).