FG wants competent operators for microinsurance, takaful underwriting

From left: Commissioner for Insurance, Fola Daniel; Minister of State for Finance, Dr Yerima Ngama and Deputy Commissioner Finance and Administration NAICOM, George Onekhena at the unveiling of the operational guidelines for takaful insurance in Lagos.

 Chuks Udo Okonta

The Federal Government has told the National Insurance Commission (NAICOM) to ensure that only fit and qualified individuals are issued licences to operate microinsurance and takaful businesses in the country.

The Minister of State for Finance, Dr Yerima Ngama, said this today Friday at the Nigerian Takaful and Microinsurance Stakeholders Engagement Workshop organised by NAICOM in Lagos. He noted that introduction of microinsurance and takaful will revolutionise insurance practice in Nigeria, as they will help deepen penetration.

Ngama said the government expects the operations of takaful and microinsurance to be properly rooted without delay, adding that the government expects insurance to contribute more to the gross domestic product.

He called on operators and stakeholders to take advantage of the opportunities to be provided by microinsurance and takeful, to improve their well-being.

He said researches have revealed that the target market for takaful and microinsurance in the country is large, stressing that takaful has attained 70 per cent penetration in the country.

He said “It is my expectation that the operations of takaful and microinsurance business would be properly rooted without delay. In view of this, the federal government hoped that the Nigerian insurance industry and all interested stakeholders would take advantage of this remarkable initiative by NAICOM towards the expansion of a new business frontier for the development of our economy.

“Interestingly, various researches have revealed that the target market for takaful and microinsurance in Nigeria is large and recent reports particularly from the few existing takaful products operators in the country indicates the attainment of 70 per cent penetration.

“This level of achievement recorded from rudimentary insurance industry players is a very good sign for our future economic development.”

He called on the industry operators to work towards the rolling out of innovative takaful and microinsurance products that would meet the diverse needs of the nation’s ever growing population.

The Commissioner for Insurance, Fola Daniel, said NAICOM is committed to driving the industry to greater heights by providing strategic and far reaching regulatory frameworks to reduce risk in the society and entrench local participation in the business of insurance. He added that this informed the commission’s decision to lower the capital requirements for the registration of takaful operation.