By Amehnews
The Commissions’ productive energies should be devoted to growing the industry rather than shrinking the existing ones with heavy levies and fines in steady of correctives measure.
The most popular said among major stakeholders in the country is that the insurance industry in Nigeria has not been able to proof its mettle to adds up significantly to the nation’s Gross Domestic Product as other developing and developed countries experiences.
Mohammed Kari, Commissioner for Insurance
For instance, as at today, the industry contributes less than 1 per cent (0.40%) to the nation’s GDP, which can be attributed to several challenges facing the industry, the major ones are poor public perception, poverty of mind among the people and unethical practices by some charlatans who go about in the borrowed robes of insurance operators.
But it remains a regret that the hope of the industry getting out of the woods may be a mirage unless there is a drastic change in the vision and modus operandi of the National Insurance Commission (NAICOM) which is the government regulatory body that supervises the industry.
According to general views among the operators is that going forward, the NAICOM should ensure operators strict adherence to rules and ethics, especially, in view of the fiduciary nature of insurance, the task of growing the industry in collaboration with the major operators such as the Nigerian Insurers Association (NIA); Nigerian Council of Registered Insurance Brokers (NCRIB); Institute of Loss Adjusters (ILAN) and Association of Registered Insurance Agents (ARIAN) is paramount to the industry’s robust existence.
Unfortunately, NAICOM has not purged itself off the picture, “headmaster mentality” to enable it get the desired cooperation with the industry and ultimately grow the sector. For now, there is no love, no lost between NAICOM and most of these operators, particularly the Insurers and Brokers, as a result of heavy penalties which the commission is always slam on them at the slightest “offence committed.”
This action of fined is already giving the operators the impression that NAICOM is existing to “kill” rather than give life to the industry. It is appreciated that operators needed to adhere to extant laws to protect the integrity of the profession, but implementing it with human face actions such laws must be done, in view of the fragility of the industry.
Citing way forward for NAICOM to take a cue from other government regulatory bodies likes the Securities and Exchange Commission and the Central Bank of Nigeria in the same financial industry, how, they regulate and the same time protect their members even during periods of obvious crisis. The Commission should not only exist and be respected if it allows itself have well- nourished and supportive operators under its control.
