NIA Chairman, Eddie Efekoha
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Chuks Udo Okonta
Underwriters with entrepreneurial mind sets are required to move the insurance industry forward, the Fire Offices Committee (FOC) of the Nigerian Insurers Association (NIA), has canvassed.
The Committee in a report submitted to the association, maintained that such underwriters must focus on sound cost control initiatives; extend the borders of insurability by designing attractive product packaging and come up with value creation and differentiation strategies to mine the growth opportunities being created by the advancement of technology.
According to the committee, insurance companies with good internal controls, effective risk management and strong corporate governance are more resilient to turbulent financial conditions than poorly managed institutions. It urged boards and senior management of all underwriting houses to ensure that their companies are operated in accordance with sound business and financial practices.
Underwriters were also warned to show professionalism by refusing to demand favour from quasi professionals with whom they have business dealings.
The committee urged insurers to cut down on all expenses lines, loss reduction by selecting risks with lower probability of loss occurrence and increase premium or do a mix of low premium or loss reduction per policy.
