Insurance sector to discard fixed premium charge for standard rate


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Chuks Udo Okonta

Insurance premium would soon no longer be fixed as the National Insurance Commission (NAICOM) is coming up with guidelines to ensure premiums are placed on minimum and maximum standard.

Inspenonline gathered that the guidelines would ensure insurance premiums don’t slide below a set minimum and exceed a maximum standard, which is contrary to the present position where premiums are fixed.

The Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar, who represented the Commissioner for Insurance, Sunday Thomas, at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar, in Lagos, said NAICOM would soon release guidelines on standard premium rate.

He noted that insurers in most climes practice the standard premium rate mechanism, adding that such practice enables insurers adjust to economic realities, especially in the face soaring inflation.

He submitted that NAICOM has strengthened its regulatory oversight and implored operators to settle genuine claims reasonable time and discharge their obligations.

Abubakar noted that insurance regulation and supervision are always the bedrock of national economic development, stressing that he believed NAICOM’s reforms and regulatory initiatives will positively impact the insurance industry if achieved and that the Industry will witness tremendous development and growth.

He implored insurance practitioners to remain complaints and support the commission’s efforts in developing the sector.

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