Thursday, 4 July 2013

NAICOM commissions Ilorin zonal office


 

Chuks Udo Okonta

 

The National Insurance Commission (NAICOM) today July 4, commissioned its North-Central Zonal Office in Ilorin.

The Commissioner for Insurance and helmsman, NAICOM, Fola Daniel, at the event said the commission was established to regulate and supervise the Nigerian Insurance Industry, adding that NAICOM derives its regulatory and supervisory powers from the National Insurance Commission and Insurance Acts 1997 and 2003 respectively.

He noted that as an agency of the Federal Government, NAICOM’s activities are coordinated from its headquarters in Abuja, with a Control Office in Lagos and two zonal offices in Kano, and Enugu. 

He said to achieve the commission’s mandate of deepening insurance penetration and awareness in the country, its Governing Board in 2011, approved the establishment of three additional Zonal Offices to be located in Ilorin, Port-Harcourt and Maiduguri. 

Daniel noted that these locations were carefully selected owing to their strategic economic importance and relevance to the growth and development of insurance in the respective zones.

He said the Commission is making arrangements to commission the South-South and North East Zonal offices, adding that in the quest to deepen insurance penetration, NAICOM, established a developmental platform called the Market Development and Restructuring Initiative (MDRI), which is in line with the Federal Government’s FSS2020 development framework.

Daniel noted that the goals of MDRI are to promote public understanding of insurance mechanism; build confidence in the Nigerian Insurance Market, grow the gross premium income, increase insurance density and contribution to GDP and ensure enforcement and monitoring of compulsory insurances in Nigeria.

“This programme has been launched in all the six geo-political zones of the country including the Federal Capital Territory, Abuja. The Commission also embarked on massive sensitisation campaigns across the country to further educate and inform the public about insurance, build confidence and grow the gross premium income.

“The outcome of these efforts by the Commission is already being felt in the industry and by extension, the economy,” he said.

 

He noted that some improvements recorded in the industry in the past few years include, increase in the number of policyholders from 500,000 in 2010 to 1,500,000 in 2012, gross premium income increased from N157 billion in 2010 to N250 billion in 2012; and, resulted in an increase in the ratio of premium to Gross Domestic Product from 0.5 per cent to 0.7 per cent; collaboration with National Pension Commission (PENCOM) to develop the annuities market.

Others are; companies with foreign equity increased from three to 10, generating substantial foreign direct investment, increase in local capacity for Oil and Gas risks from10 per cent to 48 percent, and commencement of implementation of Section 50 of the Insurance Act 2003 which has improved financial assets of operators.

Daniel also lauded the Governor of Kwara State for his purpose-driven leadership, which he said will positively transform the state.

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