Insurance

NAICOM to issue directives on rating of protests, civil unrest covers

From left: Deputy President, CIIN, Mr Edwin Igbiti; Commissioner for Industry, Trade and Investment Ogun State, Kikelomo Longe, Alake of Egbaland, HRH Adedotun Aremu Gbadebo III; President, CIIN, Sir Muftau Oyegunle; Secretary to the State Government Ogun State, Mr Joseph Talabi, Commissioner for Insurance, Mr Sunday Thomas and Amb. Toye Okanlawon at the opening ceremony of the 2020 Insurance Professionals’ Forum in Abeokuta.

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums especially on insurance coverage for Strike, Riot and Civil Commotion (SRCC) clauses, the Commissioner for Insurance, Sunday Thomas, has said.

Thomas, who said this yesterday at the Chartered Insurance Institute of Nigeria (CIIN) 2020 Professionals’ Forum at Abeokuta, Ogun State, posited that the move would ensure that profitability can be guaranteed and claims settled promptly without financial strain on the companies.

He maintained thst the recent outbreak of protests and civil unrest across the country and the resultant losses has exposed the vulnerability of Government, businesses and individuals to unforeseen events, adding thst these  incidents have further reinforced the value and necessity of the insurance industry.

“However, these incidents are likely to increase insurance claims, thereby exacerbating the already weakened liquidity and capability of insurance companies. This has reinforced the need for proper underwriting to ensure insurers are able to settle corresponding claims obligations to cushion the effect of losses on Nigerian households and businesses,” he said.

Thomas said it is pertinent to note that insurance coverage for Strike, Riot and Civil Commotion (SRCC) clauses, which were redundant in the past and which by competition are mostly offered free of charge must now be adequately rated as an important product for the survival of Nigerian businesses.

“The Commission will be issuing directives to ensure that underwriting is strengthened to appropriately rate and charge requisite premiums so that profitability can be guaranteed and claims are settled promptly without financial strain on the companies,” he posited.

 

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