NAICOM to drive industry penetration with states’ engagement

…Plans 12 new distribution channels   

The National Insurance Commission (NAICOM), has concluded plans to seek partnership with all the 36 states across the country through its compulsory insurance programmes.

The Commissioner for Insurance, Mohammed Kari, at a courtesy visit to the Kaduna State Government, noted that such partnership would pave the way for the Commission to set up a branch in Kaduna, now that it is considering opening new offices nationwide.

He said the Commission launched the Market Development and Restructuring Initiative (MDRI) in 2009, adding that it has commenced the second phase of the initiative, which is enforcement of the compulsory insurances across Nigeria.

Kari, who applauded the government for the developmental projects across the state, implored it to insure all its assets with genuine insurance companies, in a bid to curb the spread of fake insurers.

He said the State would benefit immensely from supporting the initiatives of the Commission aimed at deepening insurance penetration, stressing that the partnership will also help weed out quacks operating as insurers, and aid insurance compliance in the state.

To him, such partnership will not only improve the Internally Generated Revenue (IGR) of the state, but also generate employment, while transferring the burden of compensating victims of mishap from the government to the insurance companies.

This, he said, will allow the government to focus more on developmental projects, rather than looking for money from the little resources of the state to settle victims.

Kari said these distribution channels would support baccassurance referral model, which is already in place, and will enable insurers penetrate the grassroots.

Although he did not lists the 12 new channels of distribution  but industry analysts believe that bancassurance, agency network , micro finance, and filling stations will make the list of new channels.

Kari said: “These channels will increase accessibility to insurance products, so that majority of the population can access the product as part of their financial planning.”

Responding, Kaduna State Governor, Nasir El-Rufai, represented by his Deputy, Bala Bantex, said the government will continue discussion with NAICOM with a view to ensuring insurance implementation and penetration, whilst urging the Commission to lay out in clear details what the state should do to support its operations.

Promising that the Commission’s request will receive the full attention of the government, he added that the idea of sanctions to enhance insurance compliance is unavoidable.

He said proper adoption of insurance will contribute to the growth of the nation’s GDP, pointing out that the state government has insured some of its facilities with insurance firms, although, it is now being more careful in order not to deal with quacks.

The Governor also said the state is making it mandatory for market men and women to insure their goods and assets, and called on the Commission to always ensure that insurance companies paid claims on insured risks whenever the need arises.