Insurance penetration gains ground as states make budgetary provisions for insurance

More state governments appear to have embraced insurance as part of top strategies in mitigating against loss of assets while encouraging financial prudence.

To this end, some state governors are said to have favoured the inclusion of insurance spending in their 2023 budgets as a single line.

Leading the states to have bought into the campaign embarked upon by the National Insurance Commission (NAICOM) on the need for government to resort to the insurances of assets are Kano and Katsina states which are said to have made provisions in their 2023 budget proposals to their various assembles.

It would be recalled that NAICOM has been engaging stakeholders, including state governments, towards ensuring the domestication of the compulsory insurance laws and improve the business of insurance in their respective states, the Commissioner for Insurance, Sunday Thomas, said.

Some of the compulsory insurance covers in Nigeria are: Occupiers liability insurance or insurance of public buildings, insurance of buildings under construction, Employer’s liability/ workmen’s compensation insurance, Group life assurance and Health care professional indemnity insurance.

Thomas, who is also the chief executive of NAICOM, disclosed these at the seminar organized for financial journalists in Lagos at the weekend.

Speaking on the theme of the seminar; “The Future of the Nigerian Insurance Sector in a Shifting Landscape,” he said it is promoting the development of products and business models that meet the needs of the financially excluded group.

He also said that the Commission is promoting the development of products and business models that meet the needs of the financially excluded group, while ensuring automation of the Commission’s processes with a focus on actuarial capacity development programme and risk-based supervision regime.
He added that “Furthermore, the insurance sector plays a vital role in financial inclusion because it reduces the poverty line, assist people to manage their risk and protect them from the negative adverse effect of any unforeseeable circumstances, as well as increases access to other financial services.

“In today’s modern business environment, disruption plays an integral part of any business, hence innovation being implemented by the Commission is geared towards gaining control of a specific segment of the market that has been left untapped by encouraging the introduction of products tailored to the consumers in order to grow insurance businesses.”

He said the theme at this period of rejuvenation, “calls for the Nigerian insurance sector to develop innovative products and distribution channels, embark upon massive infrastructural development, improvement in social safety nets scheme, rejig business continuity plans and general deployment of technology to meet the expectation of today’s consumers and create new experiences that add value.”
The NAICOM boss said the Commission is encouraged to believe in a new dawn in all facets of regular atory policies, leveraging technological innovations, and a positive paradigm shift focused and poised to meet the anticipated surge in the demand side of the economy.”

He raised concern about some people who hold positions that are unknown to the commission in the various insurance companies, causing problems for and de-marketing the industry.

“Anybody that is not known to the Commission and is participating in a critical role in any of the insurance companies will be banned from participating in the insurance sector henceforth. We will make sure that the person does not participate in the insurance business in this country anymore,” he stated.

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