Experts lament non-policy losses to Nigerians during elections
The National Insurance Commission (NAICOM) has said that there is need for Nigerians to embrace insurance as a form of risk management mechanism, especially in the election periods.
Commissioner for Insurance, Alhaji Mohammed Kari, who stated this, noted that more insurance protection should prevail during electioneering, as it a period characterised by uncertainties.
In an interview with The Guardian on the sidelines of a public lecture organised by Peninscope with theme, “Role of pension and insurance in the economy in an election year,” in Lagos, Kari said that as the nation moves into the election period, it could experience instability.
He harped on recurring uncertainty during the period, adding that there is need for insurance to be embraced by Nigerians, as lives and properties worth of millions of naira are lost to lack of policy cover.
Kari who was represented by the Director, Inspectorate, Barineka Thompson, said: “Insurance industry, like other components of the financial system, is changing in response to a wide range of social and global economic forces.
“Similarly, insurance supervisory systems and practices must be continually upgraded to grow with this development and particularly in the election period that we have.”
According to him, insurance industry plays a crucial role in sustaining any economy and as such, should be appreciated and embraced by all, adding: “More than N115 billion worth of net claims were paid in 2017, and so far, we have had over N138 billion claims paid in 2018.”
The Managing Director of Sterling Assurance Limited, Dr. Fatai Lawal, who was represented by the acting General Manager Marketing, Sam Olabanji, added: “The election year is characterized by violence, slow passage of certain reforms, political party prostitution and so on. And all these bring about uncertainty in the political and economic life of a nation.
“The question of whether to spend or not to spend lurks in the minds of business owners and even individuals. Insurance proffers some solutions to these aforementioned risks.”
However, he suggested that the insurance policies suitable during election year include fire and burglary, household, comprehensive motor insurance, business interruption, life insurance covers (endowment and investment policies) and annuity, among others.
Still commenting on the development, the Managing Director, Glanvills Enthoven Insurance Brokers, Supo Falana, called for innovative ways to include a greater number of Nigerians into the sector, noting that this could be done through creation of tailor-made products.
The Managing Director, Crusader Sterling Pensions, Niyi Falade, agrred that insurance should be primed more towards the election year, because the period is heavily characterised by losses in the investment portfolio.
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