The recapitalization exercise in the insurance industry will significantly conserve foreign exchange currently going to other nations of the world.
Acting Commissioner for Insurance (CfI), Mr Sunday Thomas, stated this at the one-day seminar for Insurance journalists, in Kano State, Monday.
According to him, the Market Development and Restructuring Initiatives, MDRI, would be a game changer in the nation’s insurance industry.
His words, “The recapitalisation exercise which was announced is to ensure that we have financially sound insurance companies that can adequately bear the risks that they underwrite. That can afford Nigeria to save foreign exchange so that we don’t continue to lose so much in terms of the insurance businesses that are taken out of this country.
“The essence of the recapitalisation is a move to ensure that the industry becomes more robust in its technical competence and financial base, building confidence, trust and enhancing market value.
“This is aimed at repositioning the sector for self-actualization in terms of growth and development.
“Let me state in clear terms that the recapitalization process is up and running in line with the roadmap and the commission will see to its logical conclusion come December 31, 2020.”
He added that the compulsory insurances would be pursued more vigoriously in collaboration with other regulatory and security agencies.
“Going forward, we shall vigorously pursue the continued implementation of Compulsory Insurances in every part of the country. We are certainly not unaware of the challenges inhibiting the successful implementation of these classes of insurance thus far hence, our resolve to work with relevant stakeholders to ensure a seamless drive.
“Indeed, the successful implementation of compulsory classes of insurance across the nation will ensure adequate protection of our strategic national assets.
“We will be working with the relevant security agencies to guarantee effective and efficient monitoring of compliance.”
The commissioner said that his organisation had over the years invested hugely in the development of financial inclusion mechanisms which includes the introduction of Micro-insurance and Takaful Insurance products.
Media support
The CfI appealed to the media to assist the organisation in its sensitization efforts towards mobilising the Nigerian public towards insurance patronage.
His words, “The task of building an insurance sector of our dreams is a collective one and thus, all hands must be on deck to ensure our dreams become realities.
“We recognise the impact of conducive work environment to effective and efficient regulatory system and this will always remain our priority. In this regards, your optimum support is required as whatever you write or report about the industry will go a long way in building or destroying the fragile image of the sector.”
Protecting policy holders
Mr Thomas assured that his team would do everything necessary to protect policy holders against every type of infraction insurance companies.
His words, “The commission is committed to ensuring financial soundness and viability of the insurers and the adequate protection of policyholders at all times.
“These will continue to be part of our regulatory priorities. We will continue to ensure that genuine claims are promptly paid while ensuring a reasonable protection of investments of shareholders.
“In demonstrating its willingness to protect the policyholders, the commission has further strengthened its Complaint Bureau Unit to respond to public complaints over claims settlement. Available statistics have shown that there has been great improvement in this area.”
Effective deployment of technology, the NAICOM boss said, would be an area of major focus in 2020.
