NAICOM to deploy more integrated approach for insurance

In the bid to harness performance of the insurance sector in Nigeria and increase its general acceptance by a wider population, a more integrated approach is to be taken by the apex insurance regulator in the country.

The National Insurance Commission (NAICOM), has thus hinged the hope of boosting insurance sector growth on its compulsory insurance scheme, as it hopes to build bridges across the nation’s 36 states through partnership with them.

The Commissioner for Insurance, Mohammed Kari, said that such partnership with the states would pave the way for the commission to set up a branch in Kaduna, now that it is considering opening new offices nationwide, he was reported to have stated while on a visit to the Kaduna State Government.

Kari, said the commission launched the Market Development and Restructuring Initiative (MDRI) in 2009, adding that it has commenced the second phase of the initiative, which is enforcement of the compulsory insurances across Nigeria.

Kari, who applauded the government for the developmental projects across the state, implored it to insure all its assets with genuine insurance companies, in a bid to curb the spread of fake insurers.

He said the state would benefit immensely from supporting the initiatives of the commission aimed at deepening insurance penetration, stressing that the partnership will also help weed out quacks operating as insurers, and aid insurance compliance in the state.

Such partnership, he said, would not only improve the Internally Generated Revenue (IGR) of the state, but will also generate employment, while transferring the burden of compensating victims of mishap from the government to the insurance companies.

This, he said, will allow the government to focus more on developmental projects, rather than looking for money from the little resources of the state to settle victims.

Kari said these distribution channels would support baccassurance referral model, which is already in place, and would enable insurers penetrate the grassroots.