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After having successfully operated a full year following its recapitalisation, the insurance industry believes it can contribute more to the nation’s economy if only it can be given all the assistance it requires. Also appreciated is the fact that there is a growing demand for insurance, which the industry can meet with full enforcement of the various compulsory insurances. 
This, however, would have to be in understanding with the regulatory authority, National Insurance Commission (NAICOM), whose advisory role to the government will help tighten the legal frameworks. 
To this end, NAICOM, in a closed-door meeting with chief executive of insurance companies last week, brainstormed on the modalities for moving the industry forward in the New Year. BusinessDay gathered that one of the issues discussed in the meeting which held in Lagos, had to do with details of the 2009 Insurance Guidelines. This, according to a source, was to forestall rancour and possible confrontation from operators when it is eventually released. 
Besides that, the issue of approval to various annuity products was discussed, and the commission, it was gathered, sought the contributions of the operators on how to penetrate the market which is already threatened by the Programmed Withdrawal. Programmed Withdrawal is the retirement package promoted by the Pension Fund Administrators (PFAs), as approved in the Pension Reform Act 2004. 
According to Wole Oshin, an operator, last year was very interesting for the insurance industry, being the first full year of operation since the recapitalisation exercise. He remarked that the year started with high hopes on all fronts, set targets by companies were high and expectations from shareholders were even more. “All signals pointed to a year with unprecedented growth, with the stock market very aggressive and bullish. Businesses grew in leaps and bounds, and there was seeming prosperity everywhere.” With this trend, he believes that the industry, being an integral part of the economy, would have to go back to the drawing board to re-strategise for the future as inflation is bound to be on the rise and therefore the cost of goods and services. 
Oshin also pointed out that the vision of the operators is to have an industry which is appropriately benchmarked against other markets. 
Meanwhile, some areas which the industry is set to concretise in the New Year include: the enforcement of section 65 of the Insurance Act, which states that “every public building shall be insured with a registered insurer, against the hazards of collapse, fire, earthquake, storm and flood.” 
This also includes section 64, which stipulates that “no person shall cause to be constructed any building of more than two floors without insuring with a registered insurer his liability in respect of construction risks caused by his negligence or the negligence of his servants, agents or consultants which may result in bodily injury or loss of life to or damage to property of any workman on the site or of any member of the public.” 
In the meantime, the Senate Committee on Insurance and Banking, led by Senator Nkechi Nwogu, had in 2008 disclosed plans by the Legislature to make a law on Compulsory Fire Insurance for urban buildings. The proposed law, it is hoped, will complement the provisions on insurance of public buildings and buildings under construction, as provided in the 2003 Insurance Act. 
Also in the coming year, NAICOM is expected to strengthen its war against fake insurance operators, as it has restated its commitment to changing the image of insurance in the country. “Our expectation is that at the end of the day, only those companies that would pay claims would be enlisted and allowed to operate in the country, said Fola Daniel. 
Similarly, the issue of Local Content will take prominence this year, as NAICOM has reminded oil companies of the provisions of the Insurance Act 2003, requiring risks domiciled in the country to be insured with indigenous insurance companies. Section 72 of the Insurance Act provides that “all property located in the country, whether moveable or immoveable or any insurable interest or liability in relation thereto, shall be insured with a local insurer who may reinsure such liability or property overseas where the Nigerian insurance industry lacks the capacity to retain the risk.”