NAICOM projects insurance as additional source of IGR for states


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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has called on state governments to domesticate compulsory insurances in their domains and leverage it to create additional source of Internally Generated Revenue (IGR).

The Commissioner for Insurance, Sunday Thomas, who said this yesterday in Ado-Ekiti, Ekiti State during a courtesy visit to the state Governor, Kayode Fayemi, noted that the Financial Services Industry is central to the growth and sustainable development of any nation and state because of its direct impact on access to finance, catalyst to improved income, poverty reduction and stability in the financial system, stressing that as a subset of the Financial Services Industry, Insurance industry is a pivot to guarantee the sustainability of growth and development of the State and its people.

Enumerating benefits derivable from insurance, Thomas said insurance provides financial compensation to the families of insured citizens who may become victims of a disaster through loss of their properties or become disabled in event of occurrence of insured accidents/disasters.

He posited that a robust group life insurance policy made compulsory by the Pension Reform Act 2014 gives hope to the workforce who will be ready to go extra mile in carrying out assign duties knowing fully well that the employer has made provision for the dependent in event of the unexpected.

He maintained that insurance helps in creation of employment opportunities for citizens of the State and also ensures provision of grants and Fire-Fighting Equipment for the States’ Fire Services by NAICOM from the Fire Fund as stipulated in the Insurance Act 2003.

The insurance industry helmsman stated that insurance brings about reduction in the government expenditure in event of disaster that may affect the citizens of the State by shifting the burden to the risk-bearers (Insurance Companies).

According to him, another benefit is provision of free insurance and risk management education and enlightenment programme for the citizens of States.

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