Agenda for new commissioner for insurance

Kari

The appointment of Muhammed Kari as the Commissioner for Insurance, has come at a time the wind of change is blowing across the nation and the insurance industry can't afford to be left behind. Chuks Udo Okonta in this report highlights some key areas the new helmsman of the National Insurance Commission (NAICOM) should give full attention to enable him take the sector to lofty heights.

The appointment of Muhammed Kari as the Commissioner for Insurance by President Muhammadu Buhari last week Friday, can be considered as one of the best things to have happened to the industry as it will encourage continuity and policy sustainability.

Kari, having operated as an underwriter and now regulator, should understand what the industry needs to take its place in the scheme of things and the economy, especially now that the government is striving hard to restructure the position of things in the nation.

To surpass his predecessors, the new Commissioner for Insurance, should embrace change, break rules that have kept the industry stagnated, research and adopt new measures that works.

Though the tasks before him are enormous, he should prove mischief makers wrong and focus on developmental goals that will justify the confidence reposed on him by the public and President Buhari who appointed him.

Some identified areas the Commissioner should give attention are: Indiscipline; enforcement of Market Development and Restructuring Initiative, Insurance Act; awareness; corporate governance; micro insurance; takaful and insurance transformation initiative.

Indiscipline 

According to the former Commissioner for Insurance Fola Daniel, the rate of professional indiscipline in the industry remains high. This, therefore is a task the CFI must tackle urgently if the industry must make progress. He has to step on toes to get the work done. He must set and live by example so that operators can follow his steps.

Indiscipline remains a bane in the industry as some operators believe they are above the law and would always work to subvert rules meant to endear progress in the sector. The era of compromise should no longer be condoned and the regulator and regulated should be on the same page when it comes to discipline. Claims should be paid promptly, accounts submitted as expected, rate cutting and de-marketing stemmed and management expenses should be at reasonable rate.

Enforcement of Market Development and Restructuring Initiative 

This initiative was designed to move the premium income of the industry to N1 trillion and create more jobs in the economy, but lack of enforcements has kept the document on the shelve covered with dust. Picking the documents from the shelve should be one of the tasks the new commissioner should urgently execute, for all the ingredients required to move the sector forward have been put in place in the documents which the commission has expended huge some of money to develop.

Insurance Act

The past administration under the leadership of Fola Daniel, would have been happy if the Insurance Bill crystallized into an Act. Since all efforts to produce a new Act for the industry did not yield result, the present administration should hit the ground running to ensure that before its first tenure ends, the industry has a new Act that will enhance regulatory functions and strengthened the sector.

Awareness

The knowledge gap in the industry remains high just as professional indiscipline, former Commissioner Fola Daniel, once said.

The Commissioner for Insurance should embrace all relevant measures to deepen knowledge of insurance. It is believed that most people do not patronise insurance because of ignorance. The CFI should work with all stakeholders to ensure that information on the workings of insurance reaches all nooks and crannies.

Corporate Governance 

The latest efforts to entrench good corporate governance should be encouraged and be handled in a manner that the industry will gain. The issue of  tenureship of managing directors which is currently heating up the industry should be handled with care to avoid litigations, which often set the industry apart.

Disclosures which had been enhanced with the adoption of the International Financial Reporting Standard (IFRS) should be improved upon. Insider dealings that have damaged the structure of some firms should be checkmated with stiff sanctions.

Transformation initiative

The insurance industry transformation initiative which is expected to grow the number of direct jobs created in the industry from the current 30,000 people to 100,000 people in the next two years, and to more than 300,000 people in the next decade, should be pursuit vigorously.

The initiative which is also expected to generate a minimum of 10 million policyholders in the next two years, and 30 million policyholders in the next decade, should not be considered as the initiative of past government and be allowed to die. The strategies put in place to achieve this laudable initiative should be strengthened, for the achievement will be a plus to the Commissioner and the nation.

Micro insurance and takaful

These two business lines where considered to be vehicles of deepening insurance penetration especially at the grassroots. The present administration should examine the progress made so far and eliminate those things in the guidelines that have stalled progress and introduce workable concepts that will help make the initiatives succeed.

Conclusion

The insurance industry seems to be waking up going by the influx of foreign companies  and measures to reposition it for better performance. More is still needed to be done to take the sector to lofty heights.

According to the Director-General NIgerian Insurers Association (NIA) Sunday Thomas, the "The success of the Commissioner will be a success for  the insurance industry," hence, he should be supported to entrench the anticipated change.