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Chuks Udo Okonta
The Tier based capital introduced by the National Insurance Commission (NAICOM) was no doubt a very good model, but it failed because of the way the model was implemented, the past Chairman, Nigerian Insurers Association (NIA), Tope Smart has said.
He disclosed this in an interview with insurance journalists, stating that he considered the initiative as a very good model that would had enable operators play according to their different capacities. “Also, the model is aspirational in nature.
“The fact that you are a tier 2 company today does not preclude you from aspiring to be a Tier 1 company which can be achieved if you bring in additional capital. Unfortunately, we can’t go back to it as NAICOM has moved from there to minimum paid up capital,” he submitted.
Smart implored the Commissioner for Insurance and Chief Executive of NAICOM, Sunday Thomas, to prioritise market development during his tenure, stressing that he should come up with strategies to develop the market and by so doing, there would be increased market penetration and also increase contributions to the Gross Domestic Product (GDP).
He also called on the insurance commissioner to focus on confidence building in the minds of the insuring public. Insurance Companies must meet their obligations as and when due. Once this is done, members of the public will be motivated towards embracing insurance, he posited.
“Rules should be designed and companies who fail to play by the rules should be sanctioned. Also, focus should be on digital technology. Technological advancement at NAICOM and also at the level of operators should be a front burner issue for the Commission,” he added.