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| From left: The Commissioner for Insurance, Fola Daniel and President of Chartered Insurance Institute of Nigeria (CIIN), Bola Temowo, at the ongoing 2014 Chartered Insurance Institute of Nigeria (CIIN), professional forum in Abeokuta, Ogun state. |
PROTOCOL,
I am delighted to be with you this morning on the occasion of the 2014 Insurance Professionals’ Forum taking place here in Ogun State. Let me start by congratulating the president for ascending office at a time all eyes are on the industry players to take a giant leap to boost the industry’s contributions to the nation’s economic renaissance. The theme for this year’s Professionals’ Forum – The Insurance Industry – New Trends, New Strategies- is very apt. It could not have come at a more appropriate time than now.
You are all aware of the recent rebasing of the economy which now makes the Nigerian economy the largest in Africa and 26th largest economy in the world. This has however, placed enormous wake-up call on the insurance industry. With the old based economy, the sector barely contributed 0.7% to the Gross Domestic Product, GDP. With the rebasing, the contribution of the sector to GDP has dropped to 0.6%. This therefore calls for more dynamic strategies to deepen insurance reach amongst the vast populace.
We must as a matter of deliberate policy come up with new ways of doing the business in order to achieve better result. Our marketing strategy must change; our product design and packaging must change; our approach to policyholders and their complaints must change and all hands must be on deck to ensure that the message of insurance is taken to the grassroots.
If we must move the insurance market from its present level to an optimal pedestal within the Financial Services Sector, then there must also be a consensus on how best to tackle the challenges. We have a lot to offer but we seem not to be taking advantage of the huge potential before us. The fundamentals for thriving insurance industry are there in the country - a vast population, an active economy and a well-capitalized industry.
The National Insurance Commission is actively committing resources to up scaling insurance education in tertiary institutions in the country. In furtherance of this resolve, the following higher institutions have benefitted from our financial support:
Ahmadu Bello University, Zaria
University of Lagos, UNILAG
Lagos State University, Lagos
University of Uyo, Akwa Ibom
Niger Delta University, Bayelsa
Federal Polytechnic, offa
IMT, Enugu
Evans Ewerem University, Owerri
Many others are scheduled to benefit from the next phase of our intervention funding.
I am aware of the Institute’s giant stride in the promotion of insurance education at both secondary and tertiary levels. The noble efforts culminated in the expenditure of over N15 million for the production of textbooks and professional course materials at both levels of education.
Another major effort of the Council is the inauguration of the Insurance Industry Consultative Council (IICC) which will serve as a dispute resolution organ for intra-industry conflict. It will also serve as a voice on national issues on behalf of the industry as well as articulate growth agenda for the sector.
Whilst our joint efforts sow seeds of insurance understanding and growth for the future, the Commission is also currently actively engaged in promoting financial literacy, a major project of the Federal Government to which all other financial services regulators are committed.
The promotion of financial literacy in our country at this time coincides with the Commission’s focus on Microinsurance, Takaful and Agricultural insurance as a vehicle for reaching our teaming masses.
It is gladdening to note that a number of insurance companies have entered into partnership with telecom companies as a means of selling insurance products to their vast clientele. We shall continue to encourage and support all activities aimed at uplifting the insurance industry.
The Microinsurance sector around the world has grown rapidly over the past 10 years and is expected to double by 2020, producing coverage for over one billion people. Thus, with the right products, Microinsurance would herald the much desired quantum leap in the industry. This significant growth brings new and exciting innovations in products addressing health, agriculture and property insurance.
The Takaful Insurance project is also being pursued with great vigour. A good number of companies have indicated their interest in this line of insurance. A recent survey reveals that Muslims in the Country are willing to buy Takaful products and are in dire need of such alternative to conventional Insurance. This is an indication that there is a ready market for this line of Insurance business and the Commission is determined to bring such Muslim faithful within the financial community in line with its financial inclusion strategy.
The combination of all these developmental efforts alligned with value-added aftersales services, especially efficient and timely claims settlement will aid our quest of repositioning the insurance industry as the pivot of our economic growth and enhanced development.
The Commission would do everything to ensure the growth of the industry but operators must learn to play by the rules. I am not unmindful of complaints of over-regulation by some operators. The issue of regulation is not peculiar to Nigeria. It is a global trend.
The recent evaluation by the IMF of our regulatory activities indicated that the industry is under-regulated and further recommended a more rigorous regulation to protect policyholders and the integrity of the industry. Whilst we shall remain focused on enabling the market for progress, our primary mandate of protecting policyholders shall not be compromised.
We shall continue our deliberate style of wide consultations with industry players to engender understanding of our policy thrusts, largely aimed at protecting all stakeholders.
On this note, distinguished ladies and gentlemen, I sincerely welcome you to the 2014 Insurance Professionals’ Forum and wish you all very fruitful deliberations.
Fola Daniel
Commissioner for Insurance,
Federal Republic of Nigeria. 
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