Having experimented the Market Development of Restructuring Initiative (MDRI) in the past eight years (from 2009-2017) with awareness creation, the promoter, National Insurance Commission (NAICOM) said its focus in the second phase will be collaboration with other sister regulatory agencies; enhanced market distribution channels and financial inclusion.
Mohammed Kari, commissioner for Insurance speaking at a seminar for Insurance journalist held in Benin said the strategic policy of the Commission this year is to deepen the market and sustain what has been achieved in the past years.
Kari represented by Sunday Thomas, deputy commissioner for Insurance, Technical, NAICOM said efforts are on to encourage innovation and manage competition in the industry, and this has led the Commission into releasing two guidelines recently on micro insurance and rating for compulsory insurances.
He stated that the Commission will deepen utilization of existing partnerships with state governments, ministries and agencies, while also courting new relationships particularly machineries of government for effective enforcement of the compulsory insurances.
Habila Amos, director, Research, Statistics & Corporate Strategy, NAICOM said the Commission has signed agreements with several agencies to facilitate compliance with compulsory insurance and such agencies included the Federal Road Safety Corps (FRSC), and the Vehicle Inspection Officers (VIO) among others.
According to him, the management team of NAICOM had paid a courtesy visit to the Ogun, Gombe and Kaduna States Governments where possible collaboration actions were discussed.
“The Commission is engaging the Governors Forum to deploy the machinery of State Governments in the enforcement of Compulsory Insurances.”
“In October 2017, the Commission inaugurated a Technical Committee consisting of representatives of NAICOM, the Federal Fire Service (FFS), State Fire Service (SFS) from the six geo-political zones and the NIA that would drive the enforcement of public building insurance in the country.”
Habila stated further that the Commission plans to further improve the level of compliance of compulsory insurance through developing and implementing framework for coordinated enforcement of compulsory Insurance and also promote a policy to facilitate public access to insurance services nationwide.
In its drive to achieve this, the Commission had also paid a courtesy visit to the Secretary to the Government of the Federation in 2015 to seek support towards ensuring compliance with insurance of Government assets by MDAs.
Besides that, it set-up an Internal Unit in 2016 to assist Ministries, Departments and Agencies (MDAs) structure their insurances, and ensure all Government’s assets are properly and adequately insured.
Besides that, the Commission said it has continued to engage stakeholders with the purpose of collaborating to further develop the Nigerian Insurance industry.
“The Commission meets regularly with representatives of the industry such as the Nigerian Insurance Association (NIA), the Nigerian Council of Registered Insurance Brokers (NCRIB), and Chartered Insurance Institute of Nigeria of Nigeria (CIIN) among others.”
The engagement is not only limited to Nigerian organizations but also includes foreign development partners such as the International Association of Insurance Supervisors (IAIS) Toronto Center, World Bank, International Monetary Fund (IMF), GIZ, Habila said
NAICOM also plans to undertake baseline study on stakeholders’ confidence, develop and Implement strategies for improvement in stakeholders’ confidence as well as conduct annual stakeholders trust and confidence survey.
On enhanced market distribution channels, Habila said the Commission is increasing other channels of distribution with four draft operational guidelines exposed to stakeholders for comments, and these include Web Aggregators Operational Guidelines; Independent Agent Operational Guidelines; Mutual Organisation, Association, Community Organisation Guideline.
“In April, 2017 the Commission signed a Memorandum of Understanding (MOU) with the Central Bank of Nigeria (CBN) on Bancassurance to provide more distribution channels for insurance, and eleven companies have since applied for license and six companies have been approved”.
“In addition, the Commission has held meetings with other Agencies such as the Nigerian Communication Commission (NCC), the Security and Exchange Commission (SEC) and discussed on how to use those platforms to increase access to insurance”