KEYNOTE ADDRESS BY THE COMMISSIONER FOR INSURANCE, FOLA DANIEL AT THE ANNUAL INSURANCE PROFESSIONAL FORUM HELD ON THURSDAY, SEPTEMBER 5, 2013 AT PREMIER HOTEL, IBADAN, OYO STATE.

Protocol

Distinguished participants, ladies and gentlemen,

It is my pleasure to yet again address you on this august forum comprising the intellectuals and professionals of our noble insurance profession. I want to thank God for affording us this opportunity to converge here for this year’s annual professional forum. I must also commend the efforts of the Institute for being consistent with the organization of this annual event.

The Insurance Professional Forum is meant to bring insurance professionals under the same roof to discuss issues of common interest and mutual benefit. Beyond this, it provides the avenue for practitioners to interact and exchange ideas towards the attainment of professionalism and high ethical standards needed to drive the Nigerian insurance industry to an appreciable level of growth and development.

Perhaps, we may want to take a deeper look at our industry to reflect on where we are coming from, where we are at the moment and, to ask ourselves the question: where do we want to be as insurance professionals and practitioners; as an insurance business owner, as an employee of the business whose livelihood is dependent on the survival of that business entity and, above all, as an industry.

Mr. President, the theme you have chosen for this year’s forum "The Insurance Industry in Motion – Emerging Issues for the Professionals" is very apt. I believe there could not have been any better time than now to assess the gains of the industry and look at ways to sustain the momentum, and possibly enhance it.

I am however concerned as to how much of these well-crafted themes and presentations have impacted and influenced our ways of doing business as insurance professionals. How much lessons have we learnt from the various lectures we have received in the past; how have we imbibed and applied the knowledge acquired in our day-to-day activities. I believe it is high time we see this forum as an avenue to add value and further enrich our knowledge as true professionals rather than seeing it as another social gathering.

We may all be aware of the fact that insurance in the whole of Africa has been characterized by low penetration, poor public perception, understanding of insurance mechanism and awareness. This has resulted in low contribution of the insurance sector to the financial growth of most countries. Nigeria with a population of 170million today should be the leading insurance market in Africa. Regrettably, this is not the case as the country continues to trail behind countries like South Africa and Morocco in terms of total Premium Volume and density.

The Commission incepted various reforms in the industry aimed at facilitating deeper market penetration and contribution to the nation’s Gross Domestic Product. We are glad to note that these efforts by the Commission are beginning to yield positive results, but more needs to be done.

The Commission did recognize the desirability of incorporating micro-insurance and takaful as important vehicles for achieving greater insurance penetration in the country. In collaboration with GIZ of Germany and other developmental agencies, the Commission in 2012 conducted a Country-wide diagnostic study on the viability of micro-insurance in Nigeria. This exercise was followed up immediately by a Stakeholders engagement workshop in October 2012 to discuss the findings of the study.

As part of further efforts to promote micro-insurance and create awareness, the Commission, in conjunction with the developmental partners will on September 10th – 11th, 2013 be hosting an International micro-insurance Conference/Learning Session in Abuja. Facilitators have been drawn from relevant institutions from within and outside Nigeria especially, in those jurisdictions where micro-insurance has been successful.

It may interest you to know that quite a number of people from other African countries; Europe and Asia have so far registered to participate in the conference. I will encourage you all to, as much as possible endeavor to participate in the conference. From the report of the studies, we can confidently assert that Micro-insurance presents us a vehicle for geometric growth.

It is the Commission’s believe that insurance professionals need to develop the retail insurance market which has remained grossly untapped in Nigeria; considering our vast population.

The insurance sector is currently embarking on several reforms which include transition to IFRS, Risk Based Supervision, Market Conduct, Claims Settlement Reform; Financial Inclusion etc all geared towards developing the Nigerian Insurance industry and improving the general perception of insurance. The industry is indeed in motion.

Finally, let me add that the on-going implementation of the no premium, no cover rule has significantly improved the cash flow of insurance institutions. It is therefore expected that this would impact on our claim settlement ability, thus removing a major sore point in the relationship of insurance consumers and service providers. We expect this positive turn of events to enhance employee remuneration and better returns on investment for shareholders.

Mr. President, distinguished participants. I want to thank you for the opportunity yet again to address this gathering. I hope that you will find the forum invaluable and fulfilling.

Thank you.