NAICOM adopts new campaign strategy on MDRI

Chuks Udo Okonta

The National Insurance Commission (NAICOM) has adopted a new campaign strategy to promote the Market Developement and Restructuring Initiative (MDRI) programme, Inspen, has learnt.

A source in the commission said the campaign strategy would enable the industry achieve the projections envisaged in the MDRI programme. Though he failed to disclose the strategies, which is being worked on in the review of the MDRI, he added that the strategy would help promote insurance and boost operators profitability.

Under the MDRI, insurance operators hope to raise the value of insurance contracts to about N1 trillion ($6.4 billion) from N300 billion in 2017, contribute about three per cent to the Gross Domestic Product (GDP), penetration increase to 22.5 per cent from 10 percent.

The Commissioner for Insurance Fola Daniel said compulsory motor-vehicle insurance, which makes up most contracts now, would remain at about 10 per cent by 2017, while life insurance would constitute seven per cent, general business insurance three per cent and petroleum companies’ insurance 2.5 per cent.

Daniel said oil and gas businesses will continue to contract international companies to insure their Nigerian operations as the capacity of local insurers is still limited.

Managing Director Riskguard-Africa Nigeria Limited Mr Yemi Soladoye said NAICOM has almost perfected its work on consumer education, which is massive insurance education in the country.

He noted that the effort would involve constructive information sharing, media advertorials and more. He said within the next two years, no body in the country will be in doubt as to the benefits derivable from insurance operations and the rights of the public.