What Insurance Holds for Nigeria in 2010?

ndustry watchers have predicted that year 2010 may be that of magical accomplishments.  For some people, it is a year of food for all, water for all or in summary, a year that would witness the achievements of all that Nigerians need to live a comfortable life. The year holds different promises for different sectors. For the insurance sector however, it could be predicted as a year of consolidation. Not withstanding the fact that the sector has been plagued by negative image over the years, current efforts by stakeholders seem to paint a glowing picture. For instance, in the oil and gas underwriting, insurance companies has put measures in place to ensure that there is a better platform for operators than what existed in the previous years. According to the chairman of the Nigeria Insurers Association (NIA) Mr. Wole Oshin, the umbrella body has succeeded in putting in place, “guidelines on consortium bidding with the assistance of the National Insurance Commission (NAICOM).” In addition, the industry presented a joint memorandum to the National Assembly during the public hearing on Oil and Gas Industry Content Development Bill. What that means is that 2010 promises to be a better year in the oil and gas underwriting, a situation that is likely to empower local insurers to take their fair share of the hitherto foreign insurers-dominated business.
Some of the impediments that have hampered the growth of insurance over time are the issue of broker’s dominance, a situation that has led to huge volume of unpaid premiums by brokers to the insurers. One of the pointers to the bright picture is the useful meetings which the insurers have had with the National Council of Registered Insurance Brokers (NCRIB). With more conducive environment created, indications are that the industry will be better positioned in 2010 to offer better services on a mutually- beneficial ground.
Another pointer is the market agreement which promises to promote ethical conduct and enhance market discipline in the industry as well as improved service standards.
Also, the approval by the National Pension Commission (PENCOM) to write annuity business is an indicator that operators will take advantage of development to market life annuity.
In a nutshell, the insurance industry in 2010 promises a more robust achievement than that of the previous years. In addition, the implementation of compulsory insurances of public buildings and enforcement of third party motor vehicle insurance cover and other compulsory insurances points a positive way forward.
Interestingly, the industry is fully represented in the Financial System Strategy 2020 (FSS 2020) committee. Expectedly, the blue print that will make Nigeria the safest and fastest growing financial system is expected to unfold in the emerging market.