Underwriters take insurance issues to Presidency

Underwriters take insurance issues to Presidency

Chuks Udo Okonta

The Nigerian Insurers Association (NIA)hopes to seek an audience with the Presidency to table issues such as the key roles of insurance to the socio-economic growth and development of the nation;its Chairman Remi Olowude, has said.

Olowude who disclosed this in Lagos, said in line with the association's determination to achieve its mission and objectives, it has become imperative to take deliberate steps towards closer interaction and strategic partnership with all stakeholders, particularly the major arms of government: the Executive, Legislature and the Judiciary.

He noted that towards this end, the Governing Council of the association will consider seeking an audience with The Presidency to table issues such as the key roles of insurance to the socio-economic growth and development of the nation.

He said how insurance industry and the Government can collaborate in areas of poverty alleviation, would also be considered, together with the need to give the industry the opportunity to contribute to the formulation of certain government policies; the industry representation in appropriate government committees; among others.

He noted that effort would also be made to ensure the restructuring and strengthening of the association's secretariat for effective public sector liaison and monitoring of the political and legal environment as it affects insurance, adding that this has become necessary as recent events in the financial sector have shown, no insurance company was too big to fail or too small not to matter.

He said: "Insurance companies are institutional investors which invest in equities and securities. When these entities fail, insurance companies are faced with the challenges of honouring their obligations to their customers. But unfortunately, there is nothing in place on the part of the government to bail out the insurers in times of trouble. This is food for thought.

"Similarly, we intend to initiate interactive sessions with the appropriate committees or organs of the two chambers of the National Assembly to discuss issues such as restrictive laws on insurance practice, multiple taxation, insurance awareness and penetration, development of oil and gas industry.

"The NIA will equally strengthen relationships with the different organs of the Judiciary by organising annual or bi-annual Insurance seminars for judges and the leadership of the Nigerian Bar Association.

"The seminars will focus on developments in insurance law in Nigeria, and ensure that the judiciary, legal profession, the regulators, and practitioners in the insurance industry as well as the media have a mutual understanding of insurance law and practice. The more people understand the law, the less the courts are inundated with avoidable suits."

Olowude said the association will pay greater attention to its partnership with the Organised Private Sector (OPS), adding that it will increase its participation and representation in the activities and deliberations of the Nigerian Association of Chambers of Commerce, Industry, Manufacturing and Agriculture, the Chambers of Commerce and Industry in Lagos, Kaduna, Abuja and Port Harcourt, and the Nigeria Employers Consultative Association.

He said the NIA will also support the activities of the Cargo Defence Fund, an offshoot of the Nigerian Shippers Council (NSC)and shall collaborate with the NSC to introduce Protection and Indemnity insurance clubs, to monitor developments in maritime law on carriage of goods by sea and related international conventions.

He said this kind of collaboration will help to develop marine insurance generally by ensuring full protection of maritime risks, backed by authentic and strong reinsurance cover to lighten the burden of marine insurance claims.