Soladoye sets agenda for implementation of MDRI

·         Wants NAICOM to commit N370m to project

Soladoye

Chuks Udo Okonta

Worried by the seemingly abandonment of the Market Development and Restructuring Initiative (MDRI), the Managing Director Riskguard-Africa Nigeria Limited, Yemi Soladoye, who played an active role in the development of the initiative, has outlined steps to be taken by the industry regulator – National Insurance Commission (NAICOM) and operators to reactive the set objectives.

Soladoye, who spoke at the Chartered Insurance Institute of Nigeria (CIIN) annual education seminar in Benin City, Edo State, said the set objectives in the initiative can be achieved if the stakeholders make some commitments.  

He called for a return to the implementation of the MDRI strategy document, adding that if implemented about N800 million will still be generated as sideline income by NAICOM.

He noted that N6.0 trillion premium will still be generated by the industry in 2020 and that about N25.0 billion supervision levy will be generated by NAICOM (2015 – 2020).

According to him, NAICOM will only need to spend about N370 million on the MDRI project, while the industry operators made a pledge of N300 million for insurance education, stressing that massive collaboration with the private sector and the MDAs is also needed to give life to the initiative.

The MDRI was evolved by NAICOM to revolutionize insurance practise, it key deliverables

include: Increase Gross Premium Income (GPI) from N200.0 billion in 2009 to N1.0 trillion in
2012, N2.5 trillion in 2015, and N6.0 trillion in 2020.
   

It was also to lower the Insurance Gap from 94 per cent in 2009 to 70 per cent in

2012, increase insurance contribution to GDP from 0.72 per cent in 2009 to 3.0
per cent 2012 and Increase Premium per capital from N525.00 to N7,500 by 2012.

It was to build consumer trust and confidence to the level that mere exchange of insurance

documents will resolve any road – traffic dispute – 2012, make insurance a tool of facilitating
the growth of other sectors of the economy e.g. mortgage.

More so, the initiative was to make insurance a tool for raising funds for projects of national

development - to the extent that it will feature in the FGN Budget and provide fund for the Fire
Service at the state levels from 2011 – sec 65

It was to create about 800,000 new jobs through insurance distribution between 2009;

2020 and establish competency framework for the Insurance practitioners; grow the
Income to NAICOM from supervisory levies, licencing fees, violations by the public,
penalties from the practitioners reach about N100.0 billion/ annum by 2020.

It was also envisaged that it would make the insurance premium to the operators reach

N6.0trn by 2020 and replace the “Lord Lugard Era” insurance products with relevant,
bundled, sector – specific, embeddable and total needs – insurance products and develop new
markets and new distribution channels.