Chairman NIA, Eddie Efekoha
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Chuks Udo Okonta
A group of insurers have canvassed the use of warranties as against clauses in insurance policy documents to enable operators take definite actions in the event of breach by the insured.
The Fire Office Committee of the Nigerian Insurers Association (NIA), made the assertion in a presentation to the association. The committee urged insurance companies to use more of warranties in the wording in their policy documents, adding that warranties are stronger than clauses, as it imposes the burden to do or not do something on the insured .
The group maintained that warranties empower the insurer to take definite actions in the event of a breach by the insured.
They urged insurers to ensure their policy wordings suit their reinsurance arrangements.
The committee also called on insurers to ensure there is alignment of interest in the risk being proposed by the insured, stressing that the insured must be ready to invest in the risk assessment they desire.
On how to remain profitable, they urged insurers to be creative, monitor and identify accumulated risks, employ best practices and encourage teamwork.
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