The Director-General, Nigerian Insurers Association, Sunday Thomas, has urged the insurance industry to stick to the code of ethics of the profession.
A statement made available on Sunday stated that Thomas said this while making a presentation on: ‘Ethics and code of conduct: The Nigerian insurance industry,’ during a programme in Lagos.
"Underwriters must act with the highest ethical standards and integrity. They must act in the best interest of the clients and provide high standard of service," he was quoted as saying.
According to him, the code of ethics sets out standard of behaviour that NIA members are expected to uphold, and it is meant to apply to all insurance companies and practitioners in the country.
The director-general said that the issue of ethics in the industry was recognised in Section 79 of the Insurance Act, 2003 and enforced by the National Insurance Commission.
He explained that the Chartered Insurance Institute of Nigeria was the custodian of the law, adding that business must be conducted on sound principles.
Thomas explained that sustained ethical standard would promote high level of productivity and profitability, enhance industry reputation and promote quality service delivery.
According to him, good ethical standard enhances the industry’s influence on government policies, increases the impact of the industry on the nation’s economy and makes the sector more attractive to investors.
The director-general said minimum ethical standard placed public interest above self interest, while seeking knowledge, skill and competence.
He stressed the need for professionals to be diligent in performing assigned duties and to promote professional standards, maintain honourable relationships and improve public understanding of insurance.
Thomas charged companies to establish well defined and communicated corporate culture and honour the integrity of the professional qualification.
While explaining the relevance of insurance, the NIA boss said it was a means of financial intermediation with an operation that involved the exchange of things of unequal value.
"The benefits of the Nigerian economy will only serve the insurance sector and enhance its ability to realise its full potential when discipline and high ethical standards are given priority in insurance operations," Thomas said.
Law Union & Rock to develop micro-insurance
Law Union and Rock Insurance Plc has set up a micro-insurance unit to provide policies that will meet the needs of different segments of the society.
The Managing Director of the firm, Mrs. Toyin Ogunseye, said this was part of efforts to support the Market Development and Restructuring Initiative of the National Insurance Commission to drive insurance in the grass roots.
"We have already started our micro-insurance unit with its products and channel development initiatives," she said.
The Law Union & Rock boss commended NAICOM’s efforts at developing the sector through the MDRI.
According to her, the measures introduced by the commission to create more awareness and increase government’s support for the industry are increasing the appreciation of insurance in the country.
Ogunseye pointed out that micro-insurance had the potential to significantly improve the lives of the world’s poorest people and positively impact the development of the informal sector.
She explained that it was one of the instruments that was been used to bring the poor into the conventional financial system and at the same time improve their well being to give them a better standard of living.
The managing director further explained that micro-insurance could also be seen as an instrument to actualise the much needed financial inclusion of the population at the bottom of the pyramid.
This, according to her, is because conventional insurance by nature does not cater for the poor or the low income earners in the society.
Ogunseye said Law Union & Rock was interested in meeting the needs of the insuring public through the provision of innovative products, which would be affordable to the retail market.
She said with micro-insurance, the policyholder would be encouraged to build a savings culture and create wealth.
She also said that when the policyholder had insurance against an insured occurrence, he would not have to go through any hardship because the insurance company would pay him his claims when need arose.
Source: Punch
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