Insurance Has Potentials to Contribute Significantly to Economy ---Fola Daniel

  As the insurance industry earnestly awaits implementation of the new laws put in place by the committee on the review of insurance laws and regulations headed by Professor Joe –Irukwu, there are indications that the industry may emerge stronger for it. Industry watchers believe that the hitherto unexplored areas of insurance would now be adequately addressed. Expectations are also high that the desire of the National Insurance Commission (NAICOM) to nurture insurance higher than the banks may be realized. At one of the conferences, tagged “Effective Legal and Regulatory Framework as a vehicle for Rapid Insurance Development”  where the building blocks of the new laws and regulation were laid, Fola Daniel, commissioner for insurance had a media parley where he spoke on industry expectations when the new laws becomes effective.  WILSON ITSISOR reports.
 
Industry Expectations
The Commissioner for insurance explained that more than ever before, the review of insurance laws would be taken more seriously now. He based his optimism on renewed government interest in taking insurance to higher heights. He said “government is interested in putting in place, insurance laws that will help the insured; that will improve the insurance culture as well as that which will be comparable with international standard.”  He stressed that the new insurance culture being charted would be one that will make insurance attractive to all, stressing that “the nation needs an “industry that every body will be proud and happy to go into to buy their products.” Feelers emanating from the regulatory body indicate that when the enabling laws are in place insurance may no longer play a second fiddle to banks as it presently stands. According to the NAICOM boss, “insurance industry has the highest potential to contribute more significantly to the financial market stressing that “the industry has the potential to be bigger than the banks as we have in other jurisdictions”
Daniel lamented that right now, insurance in Nigeria is cold and not hot, explaining that what that means is that “we struggle hard to convince people to buy because they can’t see the real benefits.”
The poor insurance culture, among other things, is one of the reasons why government is putting in place a structure, a new legal framework that will make insurance a must - buy in order to manage the risks that confront them on a daily basis, just like we have United Kingdom and America”.
He stated that in these developed economies, insurance agents do not need to chase after people to convince them to buy insurance.  The reason for that ease of operation, he said was due to the enabling environment which gives the insuring public “confidence that if the insured event happens, they have an insurance industry that will pay and pay on time. He emphasized that is framework for such culture is what the government is putting in place.
Industry watchers believe that the industry may actualize the expected sweeping changes. This is more so as the industry is already enjoying an image boost and growing public confidence, especially after the recapitalization .On how the industry has fared since the recapitalization. Corroborating this position, the commissioner explained that “the confidence level of the insuring public is increasing.”  He explained that along this line, the regulatory agency has done a lot to sustain the tempo.  To support his confidence, he said the commission has a complaint bureau in place where members of the public are supposed to channel their complaints against insurance companies that delay or refuse to pay their claims. But rather than increasing, the complaints have reduced so much so that the personnel there are becoming idle.
Insurance contribution to the economy
 Daniel explained that the industry was also being repositioned because government wants to make its contribution to the economy more virile, so as to be able to emancipate the country. He stressed that in every ramifications, Nigeria has the potentials to grow the industry significantly and make it contribute to the economy.
According to him, one of the potentials or raw materials that the insurance industry require is population, which he acknowledged that Nigeria has in abundance.  The commissioners added that Nigeria also has abundant natural resources which are crucial to lifting insurance higher. “We have oil and gas” he said, adding that the vast potentials in giving insurance cover to the oil and gas are enormous. Daniel explained that in the past, Nigeria could not write more than five percent of its local insurance needs.  However he expressed satisfaction that since the recapitalization, the commission has put in place some legal frameworks to ensure that the industry is taken to the next level among the comity of vibrant insurance cultures.