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Chuks Udo Okonta
The Commissioner for Insurance Mohammed Kari, says the National Insurance Commission (NAICOM) is working hard to make insurance institutions richer and better, but wondered why they are not taking advantage of the opportunities created by the commission.
Kari, who disclosed in Lagos, said one of the opportunities created to enrich the operators was the Market Development and Restructuring Initiatives (MDRI) programme, stressing that the initiative was designed by the Commission with focus on the Enforcement of compulsory insurance products, Increase insurance awareness, Reduction in incidences of fake insures/insurances and Increase agency reform.
He said: “In 2009, the Commission launched the Market Development and Restructuring Initiatives (MDRI) programme. This is a medium term industry development plan designed by the Commission with focus on the Enforcement of compulsory insurance products, Increase insurance awareness, Reduction in incidences of fake insures/insurances and Increase agency reform.
“This initiative was successfully launched in the six geo-political zones and Abuja. The Commission also followed up with massive awareness campaign, roadshows and seminars again in all the zones of the country. These efforts were geared towards making the insurance institutions richer and better.
“The question remains whether the insurance companies have been able to take maximum advantage of this window to grow their businesses,” he said.
He posited that to forestall the insistent poor cash flow position of most insurance operators and the attendant inability to settle claims and other operational liabilities, the Commission embarked on the full implementation of the No Premium No Cover as enshrined in the Insurance Act 2003 at the beginning of 2013, stressing that the initiative has significantly increased the cash flow of the insurance industry thus, enhancing its ability to settle genuine claims and other operational liabilities including, payment of dividends to shareholders.
“The Commission has also recently embarked on the sensitization of Ministries, Departments and Agencies (MDAs) of government on the compelling need for adequate insurance of their assets.
“We have equally canvassed the engagement of insurance professionals to handle their insurances to ensure they procure proper insurance policies. We have advocated the need for the MDAs to ensure adequate budgets for the insurance of their assets as well. We have entered into collaboration with relevant government agencies to enforce compliance of certain classes of insurance made compulsory by extant laws in the country,” he said.
Kari noted that the commission believes that these drives are capable of providing the much required boost in the growth of the industry.