Sunday, 11 August 2013

NIA eyes biz opportunities in kidnap, ransom insurance


 

Chuks Udo Okonta

The Nigerian Insurers Association (NIA) has mapped out measures that would enable underwriters take advantage of the opportunities provided by the menace of kidnapping and payment of ransom by victims, Inspen has learnt.

Director-General NIA, Sunday Thomas, who disclosed this said, the association has organised a training program to sensitise all insurance and reinsurance companies on the need and relevance of kidnap and ransom insurance in the country.

He noted that the umbrella body of underwriters is hoping that insurers would soon begin to provide covers for these categories of risks.

He said: “The Secretariat has organised a training program to sensitise all insurance and reinsurance companies on the need and relevance of kidnap and ransom insurance in our environment.

“We expect that members will leverage on the training to enable them grant cover on these lines of businesses.”

While operators are strategising on how to evolve the products to suit these risks, there are worries in some quarters on the profitability of the risks.

The Managing Director of an underwriting firm, who would not like to be named, said: “People talk of emerging risks kidnapping and terrorism, when insurers develop products along these classes of risks how many Nigerian would buy them. Note that insurance thrives on a large number, if only few individuals buy these policies the aim would be defeated.”

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