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Director-General
Chartered Insurance Institute of Nigeria (CIIN) Kola Ahmed; Executive Secretary
Nigerian Council of Registered Insurance Brokers (NCRIB), Fatai Adegbenro and
Director-General
Nigerian Insurers Association (NIA) Sunday Thomas at the event in Abeokuta Ogun
State.
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Chuks
Udo Okonta
In
spite that government at all levels are suppose to be highest buyers of
insurance, the revise is the case as they only contribute less than 25 per cent
to the industry’s gross premium income.
The Director-General,
Nigerian Insurers Association (NIA), Sunday Thomas, who disclosed this today at
the maiden insurance industry joint media retreat in Abeokuta, Ogun State, said
the industry needs more support from the governments, especially in the
insurance patronage and enforcement of the industry’s laws.
He
noted that motor insurance contributes about 26 per cent of the industry’s
gross premium, stressing that the association in a bid to strengthen motor
business, is working on standardising the ratings of motor insurance business
class, a step aimed at curbing rate-cutting and boosting profitability.
Thomas,
said under-rating of some classes of insurance, was borne out of the
coat-throat competition between insurance companies in their struggle for
businesses.
He
noted that that the standardisation was not expected to create a uniform
rating, but ensures that the business of motor class is not rated below certain
level.
He:
"We are trying to standardise the rating of motor insurance. We believe
the business of motor insurance should not be rate below certain level. This
will improve the balance sheets of underwriting firms."
Thomas
added that the initiative would also be expanded to group life insurance business,
to ensure that the values of these businesses are not underrated.
He
stated that rate-cutting in insurance sector was worrisome, pointing out that
most of insurance firms that rate-cut, are unable to meet their obligations
when claim issues arise, thus negatively affecting the image of the industry.
Thomas
said despite the fact that motor insurance accounted for 26 per cent of
businesses in insurance sector, only 15 per cent of vehicles on Nigerian roads
have genuine cover. This, he said, was not a good development, even though,
there has been increase in adoption of motor insurance, especially,
third-party, calling on Nigerians to ensure that they have genuine insurance
cover, and avoid dealing with fake operators.
Speaking
on the Nigerian Insurance Industry Database (NIID), he said his association has
completed the second phase of the module, which is the marine insurance,
stating that the module is currently test-working, with the hope to make it
commence full operation by next month.
"We
have completed the second phase of Marine Insurance, which is now being
test-run and will be in operation in October. We are going to work with
relevant stakeholders to ensure full compliance," he pointed out.
Advising
Nigerians to pay much priority to insurance, the DG noted that the role of
insurance in mitigation of risks cannot be overlooked, saying, insurance
education is vital and a continuous process that will increase penetration.
To
deepen insurance penetration, Thomas, said it requires exploring all aspects of
media platforms which involve publications in local languages so as to meet the
needs of the prospective insurance consumers.
He
expressed concern over the dearth of life insurance experts, saying, most of
those doing life businesses are currently general insurance business experts.
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From left: Executive
Secretary Nigerian Council of Registered Insurance Brokers (NCRIB), Fatai
Adegbenro, presenting a plaque to the Assistant Secretary NCRIB, Tope Adaramola
at the event.
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Director-General
Chartered Insurance Institute of Nigeria (CIIN), Kola Ahmed, challenged
insurance firms to be transparent in giving out media the needed information,
which would improve awareness, consumption and penetration.
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