By Tony Obiechina  Abuja 

The Federal Government has directed the National Insurance Commission (NAICOM) to deepen insurance penetration in the country by making insurance companies develop new insurance products and policies.

Minister of Finance, Budget and National Planning Mr Zainab Ahmed gave the directive when the Governing Board of NAICOM paid her a courtesy visit in Abuja on Monday.

The Delegation was led by the Board Chairman, Dr Abubakar Sani, including the Commissioner for Insurance, Mr Sunday Thomas.

Addressing members of the NAICOM board, Zainab Ahmed said “there would be a need to achieve more insurance penetration in the country.

The Minister further said, “members should commit to develop and implement policies that would promote the reputation of the industry through prompt payment of claims. Your target should be to take the industry to greater and enviable heights during your tenure”.

Stressing the need for a good Working Relationship with the Ministry, Ahmed said, “it is of utmost importance for the New Board and the Management of the National Insurance Commission to work harmoniously together in order to actualize the mandate of the Commission. 

“The Board has to develop strategies to systematically build the capacity of members through Workshops, Seminars, Study Tours, etc. to enable effective contribution towards the growth of the Industry”., 

In his address, Chairman Governing Board of NAICOM Dr Abubakar Sani told the minister that they are “working hard to proffer solutions to curb the ugly trend of insurance failure by way of instituting strong regulatory measures in the Board of directors of all the insurance entities to make them perform better, by adhering to their corporate rules that establish them”.

NAICOM, he added, will “enforce the professional code of ethics among the insurance entities, strengthen their corporate governance, which the board believes will sanitize the market”.

He then disclosed that the NAICOM Board will in due course “revisit the matter of recapitalization of the insurance industry and clean up its act with the enforcement of code of ethics of insurance profession and practice, and code of good corporate governance in companies”.

In addition, he said  the Board has promised to create an enabling environment “for insurance industry to beef up their capital through mergers and acquisitions, and invitation of fresh capital from the local and international investors”.

“Accordingly, Investors Forum where insurance companies that need capital will interact with potential investors: insurance companies will come together to showcase themselves where there will be due diligence to enable potential investors to know their financial status”.

The Board appealed to the minister to support their effort to look “for investors that would make the Nigerian insurance industry robust to effectively strengthen the entities to play their roles in making other businesses thrive in the country”.

To this end, Dr Sani said “NAICOM will organize an insurance investment forum in Nigeria and abroad with the sole aim of wooing potential investors to take advantage of the potentials in investing in Nigeria Insurance Industry”.

The Board he noted will seek the collaboration of Nigerian Investment Promotion Council, National Assembly Committee on diaspora, and other insurance jurisdictions across the globe. We want to extend our investment campaign to Europe, the Middle East and America.

The NAICOM Board Chairman said the Commission “is working to sanitize the market, and will be taking out companies that are not measuring up to expectations.

According to him, “we will install the mechanism to review all the actuarial valuations submitted to the commission for assessment and consideration”.

In order to enhance the performance of the regulatory body, Dr Abubakar Sani said NAICOM’s “strategic plan will be reviewed to align with the objectives of the commission as contained in the matching order and directives; where The Minister specifically asked the Board to uplift the insurance industry to a greater height, on the day our Board was inaugurated”.

He also asked for the minister’s support “to exterminate the menace of fake insurance policies in the country, which deny huge revenue to the insurance entities and taxes to the government”.

“In our action plan we will solicit the cooperation of your ministry to institute an insurance task force that would enforce compulsory insurance in the country.

“The task force that will be deployed, should be made of the Police, Vehicle Inspection Officers (VIO) and Nigerian Civil Defense” he said.

Abubakar Sani assured the minister that NAICOM will build a strong, viable and 21st century insurance industry in Nigeria. That is in addition to deepening insurance in the country, and “raise positively, its contribution to the domestic gross product in the Nigeria economy”.