Chuks Udo Okonta
The Market Developement and Restructuring Initiative (MDRI) has recorded up to 75 per cent success, the Managing Director Riskguard-Africa Nigeria Limited Yemi Soladoye, has said.
He disclosed this at media parley with members of National Association of Insurance Correspondents (NAICO) in Lagos. He noted that the initiative is a turing point in insurance practice in the country, adding that with MDRI, operators, regulators, support service providers, journalists and government, now realise the fact that there is something going on in the industry.
He said prior to the introduction of the MDRI, operators were leading the industry, but with the initiative, the fear of the regulator is now the beginning of underwriting wisdow.
He said: "MDRI is also a turing point because it is from that stage we saw the regulator leading the market. There is a united focus for all of us. Whether you adopt it or not, we all know that there is a project on ground and there is a destination to reach and there is a direction as to the way we can go for us to secure increased penetration for insurance business in this country.
"The initiative is a watershed in the history of the industry and it is also an evergreen thing . You cannot wish it away, as it has brought about many developments. When you read the strategy document, you would see that micro-insurance is part of the area that was recommended as were the industry will get development.
"Takafu is also an aspect of the initiative. As MDRI is targeted as restructuring, therefore, all the restructuring that are happening in the market are embedded within the the programme."
He lauded the efforts of the Commissioner for Insurance Fola Daniel, adding that prior to his appointment, the best the industry had on the premium income was 24 per cent increase, now it has increased to 36 per cent.
He said the results in the past five years that the Commissioner has being in position, is an indication that the industry will meet its projections.
He noted that with industry's projection, by the time all the insurance companies that are engaging agents fully commence operations, there will be tremendous increase. He said by December 2009, NAICOM has in its record about 1695 registered agents with different insurance companies, stressing that by December 2010, the number increased to 3404, which was about 2000 increment.
Soladoye noted that in spite the success, more companies are yet to embrace retail marketing, which he said remains one of the penaceas to the industry's growth.
"The insurance companies feel that retail system is not the area they want to adopt, despite the fact that the regulator has put in place for them a lot of incentives to make them go into agency recruitment. Note that the National Insurance Commission (NAICOM) does not have underwriting license neither does it has a brokering license.
"The regulator has done all it could, believing that this is what is operating ease where and if underwriters adopt the initiative we will get there. From the reports available to us, we have observed that the underwriters are now realigning to embrace the initiative."
He said the MDRI has not ended, stressing that there was a delay in the implementation and that the industry will adjust to meet the set targets.
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